How hospitals are providing price transparency

Many hospitals and health systems are sticking with traditional tools to determine pricing for services, and few have adopted pricing strategies favored by consumers, according to the latest Kaufman Hall State of Consumerism Survey.

The survey — conducted in February and March among 200 U.S. hospital and health system executives — found that 70 percent of respondents said their organizations use a traditional approach of benchmarking commercial health plan payment to their market to determine pricing.

Thirty-six percent of respondents said their organizations determine pricing by using service-specific price-risk analysis, while 27 percent said their organizations do so by using patient-level cost-to-reimbursement analysis or price-volume trade-off analysis, according to the survey.

Seventeen percent of respondents said their organizations use service-specific consumer price elasticity analysis. And 9 percent of respondents said their organizations don't use any of the aforementioned methods to determine pricing.

"To remain competitive, organizations must recognize the need for new, consumer-driven delivery and pricing models, and effective strategies to conveniently communicate accurate price estimates to consumers," the researchers concluded.

Access the full survey results here.

 

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