By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health 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
    physical health
    5 Ways Playing Games Can Improve Neural and Physical Health
    September 9, 2022
    Reasons For Hair Loss and Its Treatment
    Reasons For Hair Loss and Its Treatment
    February 16, 2022
    healthcare organization
    5 Actionable Strategies For Healthcare Organizations
    August 15, 2022
    Latest News
    The 6 Most Common Injuries Resulting from Motorcycle Accidents
    January 30, 2023
    6 Essential Strategies for Improving Your Medical Practice
    January 25, 2023
    Staying Positive While Living with Mesothelioma
    January 24, 2023
    The Many Health Benefits of Being Outdoors
    January 17, 2023
  • 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
    Primary Care Shortage? It’s Time to Examine Medical Education in the US
    December 25, 2012
    Great News for Consumers from ONC: The Blue Button Continues to Deliver
    March 20, 2014
    MBAs for Practicing Physicians: Learning to Lead in the New Millennium
    March 27, 2013
    Latest News
    Simplifying the Genetic Testing Process: How At-Home Kits are Changing the Game
    January 25, 2023
    9 Hospitals That Have Introduced Green Initiatives
    February 1, 2023
    Why a Health Retreat Can Be the Best Medicine
    January 12, 2023
    Best Money-Saving Tips for Health Managers
    January 12, 2023
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Why Health Care Costs Are So High. Docs Don’t Know What Things Cost
Share
Sign In
Notification Show More
Latest News
struggling with addiction
6 Signs Someone You Know Is Struggling With Addiction
Addiction Addiction Recovery
regrow teeth naturally
Advances in Stem Cell Research Can Help Regrow Teeth Naturally
Dental health
air pollution and cancer
The Proven Links Between Air Pollution and Cancer
News
investing in senior care
5 Reasons Why Investing in Senior Care Is a Wise Choice?
Senior Care
prevent birth injuries
Distressing Birth Injuries and How They Can Be Prevented
Women Health
Aa
Health Works CollectiveHealth Works Collective
Aa
Search
Have an existing account? Sign In
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Why Health Care Costs Are So High. Docs Don’t Know What Things Cost
Business

Why Health Care Costs Are So High. Docs Don’t Know What Things Cost

DavidEWilliams
Last updated: 2011/05/19 at 12:15 AM
DavidEWilliams
Share
4 Min Read
SHARE

I often hear from hospitals that they’re being squeezed greatly on cost and not getting paid enough by government and private payers. I have some sympathy for this argument, but on the other hand somehow this country outspends every other country by at least two to one, and hospitals are a big part of the reason.

So what gives?

I often hear from hospitals that they’re being squeezed greatly on cost and not getting paid enough by government and private payers. I have some sympathy for this argument, but on the other hand somehow this country outspends every other country by at least two to one, and hospitals are a big part of the reason.

So what gives?

More Read

should nurse practitioner forms an LLC

Should Nurse Practitioners Form an LLC?

Maximizing Outcomes Through Effective Patient Engagement Strategies
Robotic Technologies Can Improve Hospital Working Conditions
How to Attract More Clients to your Wellness Business
Why Work With A Healthcare Recruitment Agency & How To Choose One

An article in yesterday’s Wall Street Journal (One Way for Hospitals to Cut Costs of Tests), reporting on an Archives of Surgery study, provides part of the answer.

Making physicians aware of the costs of blood tests can lower a hospital’s daily bill for those tests by as much 27%, a new study suggests.

Researchers simply told the doctors what things cost.

“There was no telling anyone when, or when not, to order a particular test,” says Elizabeth Stuebing, a study co-author…

But she says it shows what can happen merely by giving physicians information they don’t usually have. “We never see the dollar amount of anything,” Dr. Stuebing says. “The first week I stood up and said that in the previous week we’d charged $30,000 on routine blood work and I could hear gasps from the audience.”

The situation doctors are in today is sort of like being sent to a store and told to get what they need, but not paying for the goods and not  knowing the prices of the items or even which items are expensive and which are cheap. That’s certainly a formula to run up the bill, even if inadvertently –which is what the “gasps from the audience” indicate.

The experiment was analogous to putting prices on the items in the store, but still letting the shopper buy whatever they thought they needed. That’s a step in the right direction but not exactly draconian from a cost control standpoint! (Of course there are some cost control measures hospitals impose centrally, which is different from my shopping analogy.)

I have mixed views on whether physicians should be exposed to what things cost. Pricing in hospitals is not like pricing in stores, because “charges” are often a small fraction of what’s ultimately reimbursed. I don’t know that I want doctors making tradeoffs based on faulty data or an incomplete understanding of patient preferences.

Still, letting doctors know what’s cheap, moderately priced and expensive is a good idea. In this case it seems to have held physicians back from ordering things that weren’t needed. And it does give a peek at how bloated expenditures in medicine are today.

It also underlines the fact that we are far from the point where consumers can control costs by having “skin in the game.” Do we expect patients to challenge daily blood draws on the basis of their cost and medical necessity? I don’t.


TAGGED: health care business

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
DavidEWilliams May 19, 2011
Share this Article
Facebook Twitter Copy Link Print
Share
Previous Article Promoting Healthcare Innovation Through Challenges
Next Article Does WellPoint Care About Quality…or Reducing Cost?

Stay Connected

1.5k Followers Like
4.5k Followers Follow
2.8k Followers Pin
136k Subscribers Subscribe

Latest News

struggling with addiction
6 Signs Someone You Know Is Struggling With Addiction
Addiction Addiction Recovery February 2, 2023
regrow teeth naturally
Advances in Stem Cell Research Can Help Regrow Teeth Naturally
Dental health February 1, 2023
air pollution and cancer
The Proven Links Between Air Pollution and Cancer
News February 1, 2023
investing in senior care
5 Reasons Why Investing in Senior Care Is a Wise Choice?
Senior Care January 30, 2023

You Might also Like

green hospitals
Hospital Administration

9 Hospitals That Have Introduced Green Initiatives

January 20, 2023
saving money in healthcare
BusinessGlobal HealthcareHospital Administration

Best Money-Saving Tips for Health Managers

January 12, 2023
HR staff must deal with divisive views in healthcare
BusinessGlobal HealthcareHospital AdministrationPolicy & Law

HR Must Navigate Polarizing Views in Healthcare Workplaces

January 4, 2023
cybersecurity options for hospitals
BusinessHospital Administration

Should Hospitals Use SASE or Traditional Network Security?

January 4, 2023
//

We influence million of users and is the most authentic source of information on healthcare business and technology news.

Quick Links

  • About
  • Contact
  • Privacy
Subscribe

Subscribe to our newsletter to get our newest articles instantly!

Follow US

© 2008-2023 HealthWorks Collective. All Rights Reserved.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?