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
    HIPPA compliance
    How Medical Office Staff Can Make Your Practice HIPAA Compliant
    October 29, 2021
    Everything you need to know about hyaluronic acid treatment
    Everything you need to know about hyaluronic acid treatment
    February 10, 2022
    Which Mushroom Capsules Are Good for Your Health?
    May 5, 2022
    Latest News
    Getting Back in the Game: Sports Injuries Rehabilitation Tips
    May 31, 2023
    4 Signs It’s Time to See a Therapist
    May 24, 2023
    11 Ways To Modernize Your Private Practice
    May 17, 2023
    How to Recognize the Signs of Hormonal Imbalance in Men
    May 29, 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
    ambulance fraud
    Ambulances: CMS Goes After a Major Fraud Area
    July 31, 2013
    Image
    Mobile Health Around the Globe: Magpi Data Collection System Helps Thousands Worldwide
    June 10, 2013
    medical costs
    How Much Do You Want to Pay for Medical Care?
    August 20, 2013
    Latest News
    MRI Sedation Options: What You Should Know Before Screening
    May 17, 2023
    What is the Process of Creating Medicine from Nature?
    May 2, 2023
    Choosing the Right Treatment Option for Varicose Veins
    May 2, 2023
    What Are Wrong-Site Surgeries and How Do They Occur?
    April 27, 2023
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Price Transparency Brought Lower Costs, More Competition, Study Says
Share
Sign In
Notification Show More
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 > Finance > Price Transparency Brought Lower Costs, More Competition, Study Says
BusinessFinance

Price Transparency Brought Lower Costs, More Competition, Study Says

Jeanne Pinder
Last updated: 2014/08/08 at 8:00 AM
Jeanne Pinder
Share
3 Min Read
price transparency
SHARE

Summary: What happens when prices are visible? Well, prices go down, and providers compete. So: health-care marketplace, are you listening? Here’s a brand-new study about price transparency from the influential journal Health Affairs.

price transparency“Price Transparency For MRIs Increased Use Of Less Costly Providers And Triggered Provider Competition…”

Summary: What happens when prices are visible? Well, prices go down, and providers compete. So: health-care marketplace, are you listening? Here’s a brand-new study about price transparency from the influential journal Health Affairs.

price transparency“Price Transparency For MRIs Increased Use Of Less Costly Providers And Triggered Provider Competition…”

More Read

employee's wellness

How Hospitals and Other Healthcare Providers Can Boost Employee Morale

What are the Benefits of Hospitals and Clinics Using Expense Management Services?
Tips to Keep Health Workers Safe in the Workplace
9 Hospitals That Have Introduced Green Initiatives
Best Money-Saving Tips for Health Managers

We often hear from people who want us to know that revealing prices will make prices rise: that providers, in other words, seeing high-priced competitors, will raise their prices to match those higher ones.

This flies in the face of logic, since we all know transparent marketplaces benefit consumers. Look at airline ticket sales, car sales, real estate sales — all much more transparent now that prices have become visible.

So we were interested in this recent study published in Health Affairs. Here’s the abstract; full article is behind a paywall.

“To encourage patients to select high-value providers, an insurer-initiated price transparency program that focused on elective advanced imaging procedures was implemented. Patients having at least one outpatient magnetic resonance imaging (MRI) scan in 2010 or 2012 were divided according to their membership in commercial health plans participating in the program (the intervention group) or in nonparticipating commercial health plans (the reference group) in similar US geographic regions.

“Patients in the intervention group were informed of price differences among available MRI facilities and given the option of selecting different providers. For those patients, the program resulted in a $220 cost reduction (18.7 percent) per test and a decrease in use of hospital-based facilities from 53 percent in 2010 to 45 percent in 2012.

“Price variation between hospital and nonhospital facilities for the intervention group was reduced by 30 percent after implementation. Nonparticipating members residing in intervention areas also observed price reductions, which indicates increased price competition among providers. The program significantly reduced imaging costs. This suggests that patients select lower-price facilities when informed about available alternatives.” via Price Transparency For MRIs Increased Use Of Less Costly Providers And Triggered Provider Competition.

The authors: Sze-jung Wu, a senior research analyst at HealthCore, in Wilmington, Del.; Gosia Sylwestrzak, a research manager at HealthCore; Christiane Shah, a vice president for solution management at AIM Specialty Health, in Chicago, Ill.; and Andrea DeVries, a director for payer and provider research at HealthCore.

price transparency / shutterstock

TAGGED: price transparency

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.
Jeanne Pinder August 8, 2014
Share this Article
Facebook Twitter Copy Link Print
Share
Previous Article Negotiation You Can’t Always Get What You Want: The 3 Cs of Negotiation
Next Article Image Communication Skills: The Ultimate Physician Marketing Tool

Stay Connected

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

Latest News

test
Essential Steps for Starting Your Journey as a Fitness Instructor
Fitness June 5, 2023
mimosa pudica
Health Benefits of Mimosa Pudica: The Marvel of Nature
News June 2, 2023
medical bills
Who is Responsible for Paying the Medical Bills After an Injury?
News June 1, 2023
sports injury rehabilitation
Getting Back in the Game: Sports Injuries Rehabilitation Tips
Health May 31, 2023

You Might also Like

Types of Remote Access Solutions for Hospitals
Medicare

Types of Remote Access Solutions for Hospitals

April 27, 2023
get a career in medical device sales
Medicare

What Are the Benefits of Attending Medical Sales College?

April 10, 2023
subscription based telemedicine
Hospital Administration

Subscription Management Solutions Are Crucial for Telemedicine

April 5, 2023
patient's well-being
Hospital Administration

Comfort And Safety: 7 Ways Healthcare Organizations Can Create A Better Environment For Their Patients

April 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.

Welcome Back!

Sign in to your account

Lost your password?