The Need for Price Transparency in the Healthcare System
Price transparency is important in making effective programs and in service delivery Being transparent about prices improves the experience of patients in the healthcare system Majority of patients will be more than willing to pay as long as they get informed earlier on the amount expexted This will get rid of delivery of care without getting compensation. Patients need to be well informed on the amount to pay and by what time These way patients are able to make informed decisions when seeking for services
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 The cost of care can be reduced by providing sufficient information regarding pricing. 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 healthcare system is considered to be dysfunctional when patients cannot compare prices with other service providers However, things are changing with the pressure being put on insurers, drug makers and healthcare providers to offer a price and deliver quality drugs The cost of healthcare is higher than the rate of inflation rising the need for patients to shop for healthcare services 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 cost of treatment may not have any relation with the amount offered by the insurance provider 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
It is even worse when patients don’t have knowledge of how much their insurance cover is providing The charges can change drastically if a patient goes for treatment and another complication arises in the process This means that there needs to be coordination between health planners and providers to get an estimate on the prices Major healthcare plan use a cost estimator tool to give patients a cost estimate.