To encourage patients to select high-value healthcare providers, Blue Cross and Blue Shield health plans implemented a price transparency program that focused on elective advanced imaging procedures.
For the study, patients getting at least one MRI scan in 2010 or 2012 were divided into two groups based on geographical location: the intervention group and the reference group.
Patients placed into the intervention group received price information concerning available MRI facilities and given the option of selecting different providers based on that information, while patients in the reference group didn’t get price difference information for available MRI facilities.
The data showed that over a two year period the price per MRI fell by $95 in intervention group cities, which was mostly due to patients shifting their business to a less expensive facility for their MRI scan, while the price per MRI at reference group hospitals rose by $124 during the same time period. This suggests patients select lower-price facilities when informed about available alternatives.
In addition, the price variation between MRI scans performed at hospitals and non-hospital facilities, such as free-standing centers, fell by 30 percent in the intervention cities. Although hospitals typically charge more for MRI scans than other facilities, hospitals located in the intervention cities began lowering their prices, which indicates increased price competition among providers in those regions due to the price transparency.
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