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
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    improving patient experience
    6 Ways to Improve Patient Satisfaction Within Hospitals
    December 1, 2021
    degree for healthcare job
    What Are The Health Benefits Of Having A Degree?
    March 9, 2022
    custom software development is changing healthcare
    Digital Customer Journey Mapping and its Importance for Healthcare
    July 21, 2022
    Latest News
    Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
    May 16, 2025
    Learn how to Renew your Medical Card in West Virginia
    May 16, 2025
    Choosing the Right Supplement Manufacturer for Your Brand
    May 1, 2025
    Engineering Temporary Hospitals for Extreme Weather
    April 24, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Can Thinking Younger Make You Live Longer?
    April 20, 2011
    Image
    Obesity’s Outlook Unchanged
    June 13, 2011
    When It’s An Emergency Elderly Not Treated As Well in Hospitals
    July 16, 2011
    Latest News
    Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
    May 18, 2025
    The Critical Role of Healthcare in Personal Injury Recovery: A Comprehensive Guide for Victims
    May 14, 2025
    The Backbone of Successful Trials: Clinical Data Management
    April 28, 2025
    Advancing Your Healthcare Career through Education and Specialization
    April 16, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Hospital Price Transparency Is Here to Stay
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 > Hospital Price Transparency Is Here to Stay
BusinessFinanceHealth ReformHospital AdministrationPolicy & LawPublic Health

Hospital Price Transparency Is Here to Stay

Lonnie Hirsch
Last updated: June 4, 2013 5:46 am
Lonnie Hirsch
Share
5 Min Read
hospital price transparency
SHARE

hospital price transparency[Second of two articles.]Read our previous post on the topic of transparent prices among hospitals, How to be Named the Costliest Hospital i

hospital price transparency[Second of two articles.]Read our previous post on the topic of transparent prices among hospitals, How to be Named the Costliest Hospital in the Nation.

When the federal government opened the books to the public on hospital prices, the unprecedented transparency came as a shock to many facilities and industry executives. And this visibility is likely to increase with the continued rollout of healthcare reform this year and next.

Consequently, more consumer information will intensify competition and increasingly guide medical treatment decisions.

More Read

wearable devices disrupt healthcare
How IoT Healthcare Devices Like Wearable Devices Disrupt Healthcare
Handicapping the SCOTUS ACA Decision, Part II
TV Anchorpeople and Illness: Lessons Learned
5 Smart Ways To Save Money For Medical Bills
Rib-X Pharmaceuticals’ Nobel Prize Winning Platform Combats Serious Infections

Some hospitals are already considering changes to their business and marketing strategies. Among the first to publicly embrace transparent pricing as a marketing tool is at least one Miami area hospital.

“Steve Sonenreich, chief executive of Mount Sinai Medical Center in Miami Beach,” reports the Miami Herald, “made a public pledge to divulge the contractual rates the hospital charges private insurers for diagnoses and treatments. ‘We will post our prices relative to Blue Cross, and Aetna, our contractual prices, and we’ll challenge Baptist and the other systems in the community to do the same,’ said Sonenreich.”

Few hospitals publish prices for medical treatment. In the South Florida region, Jackson Health System does not publish prices, but is willing to explore the idea. Memorial Healthcare System (Broward) publishes prices for imaging services, but not for diagnosis and treatments. “Baptist Health’s urgent care centers post prices for services,” reports the Miami Herald, but the hospitals within the system do not.

“Brian Keeley, chief executive of Baptist Health South Florida, which manages seven hospitals in the region declined to accept Sonenreich’s challenge for price transparency, but acknowledged ‘That’s where the whole industry is going, undoubtedly.’ ”

And, if transparency is the future, how will it sway selection, healthcare delivery, hospital operations, business models, marketing and advertising? The influence will likely be widespread.

  • Informed consumers will be shopping. Public awareness will be growing and informed consumers will—along with published satisfaction and service quality data—give greater consideration to cost in their purchase decision. Policies with a higher deductable amounts or defined contribution will influence consumer calculations.
  • Consumer may be confused when comparisons are not simply apples-to-apples. Hospital costs are often complex, and typically based on variables that differ among facilities. What’s more, hospital formulas for private insurers have a different structure than the way the government reimburses hospitals.
  • Competing solely on the basis of being the “low price leader” or “lowest price in town” has limited consumer appeal and remains ill advised, especially for serious medical matters such as open-heart surgery.
  • Overall value is a stronger consideration. Physician referrals, insurance networks, Emergency Department admissions, doctor and hospital reputation (branding message), satisfaction ratings, measures of safety, quality and outcomes, recommendations of family and friends, as well as an overall perception of value will remain part of the mix.
  • Insurance plans, participation and reimbursement systems are changing. For example, individual and group insurance plans are moving toward a co-insurance structure with a percentage payment replacing a fixed co-pay amount.

The introduction of hospital price comparisons is expected to provide the public with yet another reference point, and prospectively lead to lowering costs in the system. It seems likely that the price points for same services and procedures will eventually find a common level.

From a hospital marketing and advertising perspective, facilities will–more than ever–need to need to standout from the competition. Although “price” is now a consideration, effective differentiation and marketing success will remain rooted in delivering benefits and solutions to the patient and the community.

TAGGED:price transparency
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

Clinical Expertise
Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
Health care
May 18, 2025
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Health
May 15, 2025
Learn how to Renew your Medical Card in West Virginia
Learn how to Renew your Medical Card in West Virginia
Health
May 15, 2025
Dr. Klaus Rentrop Shares Acute Myocardial Infarction heart treatment
Dr. Klaus Rentrop Shares Acute Myocardial Infarction
Cardiology
May 13, 2025

You Might also Like

Image
Health ReformPolicy & Law

Why Is Washington So Polarized?

March 14, 2013
disruptive physician tool kit dike drummond
BusinessHospital Administration

Disruptive Physician Toolkit

March 3, 2013
affordable care act
Health ReformPolicy & Law

Can the “Government Shutdown” Shut Down ObamaCare?

September 25, 2013
Health careSenior Care

7 Things The Elderly Should Know Before Signing Up For A Medicare Plan

October 26, 2019
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?