“Purchasers are demanding more information about the prices that providers charge and the government is giving it to them. Earlier this year, CMS released a trove of hospital pricing data for the first time showing significant variability in cost. Cost-conscious employers are making transparency a top factor in negotiations with health plans and providers. As more pricing information becomes public, how will consumers, employers, and insurers put the data to use and what does it mean for providers?”
Price transparency will become even more critical as more consumers take on greater levels of financial responsibility for their car. According to the report:
“In the new health economy, money will move differently as consumers exercise greater control over spending and more companies compete for a piece of the healthcare dollar. Competition from new entrants, incentives to take on more risk, pressures to reduce costs, and the growing influence of consumers are all forcing healthcare organizations to rethink who they are and what they offer.”
Healthcare executives must take note. There will come a time down the line where consumers will care about the cost of their care, because they will be on the ones paying for it. And, when that occurs, expect pricing to mirror other industries where pricing better reflects value, supply and demand. How will your organization compete?
