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The Importance of Price Transparency in Healthcare

Price transparency is important in making effective programs and in service delivery This way the experience of patients in healthcare system will improve greatly When patients know wh at amount to pay upfront, they will be more than willing to pay. This helps in reduction of the amount of care that remains uncompensated Each healthcare facility needs to inform patients on what the amount owed and the duration needed to make payment. This will help patients make an informed decision when choosing healthcare providers.

It is important to note that majority of healthcare facilities and insurance providers are working hard to improve transparency in the services they deliver Transparency increases the rate of success in providing quality services Scarcity of information on pricing results in cost of care The push for price transparency has been going on for many years now. When patients go for in-patient treatment, most of the times they have no idea what they are expected to pay Healthcare providers can make cost conscious decisions with price transparency and patients can also choose which healthcare facility best suits them.

The health care system cannot be functional if people cannot compare the
pricing with other services as they don’t know the exact value of the purchase However, things are changing with the pressure being put on insurers, drug makers and healthcare providers to offer a price and deliver quality drugs There is rising demand for patients to shop for healthcare services as healthcare spending is higher than the cost of inflation. There are alternative payment methods that require providers to get information from doctors on what the cost of ordering certain tests

It can be hard to know the actual cost without knowledge of the standard price The cost of treatment varies in thousands of dollars in healthcare facilities that are in the same neighborhood let alone different countries The price of insurance for a patient may have little relation with what a hospital charges This is why price transparency is important to avoid running into unwanted cost that could be easily avoided

Price transparency in the healthcare system will enable patients to identify which hospitals they can access based on what they can afford It comes as no surprise that there are physicians who don’t know the standard cost of the services they provide

In addition, it gets complicated when the patients don’t even know the amount covered by the insurance companies. The charges can change drastically if a patient goes for treatment and another complication arises in the process It means there is a lot of coordination needed between providers and the health plan to get an estimate of prices However there is some progress as major health plans have a cost estimator tool for insured patients to find a service that can provide a cost estimate