Healthcare Transparency

In the last couple of posts I discussed the need to bring transparency to what things truly cost, and the difference between charges and costs in healthcare.  When consumers have this information, they are able to reduce the overall charges of the surgery. 

I understand that not all procedures can be negotiated in advance but greater effort must be made in getting this information into the consumer's hands beforehand.  NCN has been a leader in developing and implementing a rational and transparent way of valuing claims that are out-of-network. Taking that data we rolled out Consumer Scope to help consumers better understand what hospitals charge for a procedure vs. the actual cost to provide that service. 

We have seen in cosmetic surgery when consumers have information on charges and quality the price of that procedure goes down. In testimony before the Energy & Commerce Subcommittee on Health on June 24, 2009, John Goodman Ph.D., President & CEO for the National Center for Policy Analysis stated,

"In cosmetic surgery, virtually all payments are out-of-pocket and transparent package prices covering all services are the norm.  Even though technological progress is frequently assumed to increase health care costs, the real price of cosmetic surgery has declined over the past 15 years, despite substantial technological progress and a six-fold increase in demand.  In corrective vision surgery, out-of-pocket payments and package prices are the norm, and the real price has declined by 30% over the past decade.  Price transparency is absent in virtually every other kind of surgery."

We agree with Dr. Goodman.  When consumers have skin in the game and information is available to compare pricing and quality (which still needs improvement), we put competition into the market.  In my next post I'll discuss why with all the advancements in technology and quality improvement initiatives within healthcare, we still have not "bent the curve" in controlling the escalating cost of healthcare.