By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Health Care’s Anti-Cash Bias
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > Health Care’s Anti-Cash Bias
BusinessFinanceHealth ReformHospital AdministrationPolicy & LawPublic Health

Health Care’s Anti-Cash Bias

JohnCGoodman
JohnCGoodman
Share
3 Min Read
obamacare cash
SHARE

The patient needed a standard set of blood tests at LabCorp. The busy receptionist obligingly spent time querying her software to figure out the cash price for the tests. She came up with a quote of $537.00. Given the quote, the patient decided to go with his insurer’s network price.

Wise move.

As the statement of benefits shows, the network price was $68.63, a $468.37 saving over the cash price of $537.00.

This experience provides food for thought in several dimensions:

More Read

Here’s How Blockchain Can Benefit Healthcare, And Why It Matters
Do We Have It All Wrong About Obesity?
Myth: Frequent ER Users Don’t Use Primary Care
Why You Don’t Have Real Health Insurance
The Importance of Time in Orthopedic Patient Payment Collections

The patient needed a standard set of blood tests at LabCorp. The busy receptionist obligingly spent time querying her software to figure out the cash price for the tests. She came up with a quote of $537.00. Given the quote, the patient decided to go with his insurer’s network price.

Wise move.

As the statement of benefits shows, the network price was $68.63, a $468.37 saving over the cash price of $537.00.

This experience provides food for thought in several dimensions:

  1. With respect to claims by legislators that requiring providers to post their prices will help reduce medical costs, which price do you think LabCorp will post? Will this be an improvement that justifies the regulatory burden?
  2. Based on a variety of anecdotes (and if one has enough anecdotes they become data), smaller medical entities like individual physician practices and stand-alone therapeutic facilities are almost always willing to offer a cash discount. So are hospitals, when approached by firms in the business of arranging cash discounts. ObamaCare rules are designed to replace small health care businesses with large networks run by hospitals or insurers. What will this do to people’s ability to negotiate lower prices using cash payment?
  3. Medicaid managed care, which emphasizes contracts with big networks, has long been promoted as a cost reducing alternative to Medicaid fee-for-service, which pays individual physicians for their services. Accumulating evidence suggests that, contrary to expectations, Medicaid managed care ends up costing more than fee-for-service. What role does organizational size have in resisting pricing pressures?

obamacare cashhealthcare reform

Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

how to improve REM sleep
Unlock Better Sleep: How to Improve REM Sleep Naturally
Wellness
October 30, 2025
uv protection in winter
Winter Sun Safety: Why UV Protection Matters Year-Round
Health
October 29, 2025
Nurse Scheduling Software
Evaluating 7 Best Nurse Scheduling Software
Nursing Technology
October 28, 2025
contamination
Batch Failures And The Hidden Costs Of Contamination
Health Infographics
October 21, 2025

You Might also Like

Hard choices on Health Care at Home and Away

February 25, 2011
Health careTechnologyWellness

How Can A Custom Healthcare App Help Wellness Centers And Doctors?

October 23, 2018
HIMSS 2014
BusinessHospital AdministrationTechnology

HIMSS14: Who’s Afraid of Big, Bad Data? Or, How to Eat an Elephant

February 26, 2014

Restrict Flexible Spending Accounts

March 9, 2011
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?