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
    superfoods to help with prostate health
    10 Healthy Foods That Can Help Protect Your Prostate
    August 29, 2022
    recover from an acl injury
    Best Exercises to Rehab a Torn ACL Without Special Equipment
    November 29, 2022
    medical practice and technology advancement
    6 Essential Strategies for Improving Your Medical Practice
    January 25, 2023
    Latest News
    7 Most Common Healthcare Accreditation Programs: Which Should You Use?
    August 20, 2025
    Hospital Pest Control and the Fight Against Superbugs
    August 20, 2025
    Hygiene Beyond The Clinic: Attention To Overlooked Non-Clinical Spaces
    August 13, 2025
    5 Steps to a Promising Career as a Healthcare Administrator
    August 3, 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
    Heart Attacks & Hospitalization in CA
    June 16, 2011
    1309953786_9781780660004-web_w185_h300
    Possibly the Best #Health Advice You Could Get!
    March 2, 2012
    Is a Government Takeover of Health Care Underway?
    August 1, 2011
    Latest News
    How Social Security Disability Shapes Access to Care and Everyday Health
    August 22, 2025
    How a DUI Lawyer Can Help When Your Future Health Feels Uncertain
    August 22, 2025
    How One Fall Can Lead to a Long Road of Medical Complications
    August 22, 2025
    How IT and Marketing Teams Can Collaborate to Protect Patient Trust
    July 17, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: New ACA Provision Calls for Cost Transparency in Hospitals
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 > New ACA Provision Calls for Cost Transparency in Hospitals
BusinessFinanceHealth ReformHospital Administration

New ACA Provision Calls for Cost Transparency in Hospitals

Abby Norman
Abby Norman
Share
4 Min Read
Cost transparency
SHARE

As part of the Affordable Care Act, the Centers for Medicare and Medicaid (CMS) has put a new rule about healthcare costs for hospitals: the word is transparency. It’s not uncommon for healthcare consumers to be blind to the costs of a hospital stay until a few weeks post discharge when they get a statement in the mail. Even then, unless it’s itemized, they may not even realize the individual burden of certain procedures or medications.

Contents
  • Cost Transparency | ACA Provision 
  • Cost Transparency | Cost Variation 
  • Cost Transparency | Numbers Consumers Can Use

As part of the Affordable Care Act, the Centers for Medicare and Medicaid (CMS) has put a new rule about healthcare costs for hospitals: the word is transparency. It’s not uncommon for healthcare consumers to be blind to the costs of a hospital stay until a few weeks post discharge when they get a statement in the mail. Even then, unless it’s itemized, they may not even realize the individual burden of certain procedures or medications.

Cost transparency  

Cost Transparency | ACA Provision 

New rules put forth by the ACA will require hospitals to be transparent about the costs of care at their facility. They can do this in one of two ways: either by releasing a list of procedures and their costs, or, releasing the information after an inquiry by a patient.

The hope is that more informed patients will make more informed decisions about their healthcare, and an overall reduction in spending by healthcare professionals will follow. Reducing costs is the number one concern for many healthcare organizations, and while some overspending has been curbed by RAC audits, this only applies to Medicare beneficiaries. By releasing information to all healthcare consumers, reductions will hopefully be seen across the board by both publicly and privately insured patients.

More Read

medical school
First U.S. Insurer to Build Medical School
Cynical Thoughts about Medical Insurance
7 Tips: Taking Your Social Media Persona to the Next Level
Intermountain Healthcare Opens Innovation Center
Disruptions on the Yellow Brick Road II

Cost Transparency | Cost Variation 

A major factor in the ACA’s recommendation of cost transparency comes from the simple fact that costs vary from one hospital to another; sometimes within the same geographic region. It’s not uncommon for a procedure at one hospital to cost more or less than it would at a hospital a few towns away,  both organizations potentially serving the same demographic.

As you can imagine, if consumers knew the cost outright, before making a decision about treatment, they would choose the facility that will charge less. While the ultimate goal of cost transparency may not be to foster competition between hospitals, it certainly demands accountability.

Cost Transparency | Numbers Consumers Can Use

This provision under the ACA requires hospitals to make public their charges, but they do have a certain degree of decision making when it comes to disseminating the information to patients. Hospitals will be tasked with designing and supplying these numbers to patients, ideally in a way that is easy to comprehend and actionable. Numbers mean nothing to consumers unless they can use them.

TAGGED:ACAprice transparency
Share This Article
Facebook Copy Link Print
Share
By Abby Norman
My name is Abby Norman and I am a healthcare blogger. With over 10 years of experience in the medical field, I have developed a passion for helping others understand the complexities of healthcare.

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

travel nurse in north carolina
Balancing Speed and Scope: Choosing the Nursing Degree That Fits Your Goals
Nursing
September 1, 2025
intimacy
How to Keep Intimacy Comfortable as You Age
Relationship and Lifestyle Senior Care
September 1, 2025
engineer fitting prosthetic arm
How Social Security Disability Shapes Access to Care and Everyday Health
Health care
August 20, 2025
a woman explaining the document
How a DUI Lawyer Can Help When Your Future Health Feels Uncertain
Public Health
August 20, 2025

You Might also Like

obamacare and you
Health ReformPolicy & LawPublic Health

#ObamaCare and You: Thoughts From Ardis Dee Hoven, M.D., President, AMA

October 24, 2013
healthcare marketing CMO
BusinessFinance

The CMO: Mind the Gap

May 29, 2013
ppe equipment for homecare workers
Health careHospital AdministrationPolicy & Law

4 Essential PPE Items for Home Care Workers

January 12, 2022

Can Decision Aids Help Lower Medical Costs?

September 13, 2012
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?