It’s time to champion healthcare price transparency
[This article was authored by PatientKeeper CEO Paul Brient]
Much is written about how costly healthcare is in the United States relative to other advanced countries. The U.S. Centers for Medicare & Medicaid Services reports that national healthcare expenditures in 2015 accounted for $3.2 trillion in spending, or 17.8% of GDP. America’s healthcare costs are expected to continue to spiral upward at an average annual growth rate of 5.6%.
These numbers are alarming. But what may be even more concerning is that physicians—the people responsible for ordering or delivering the healthcare services that patients consume—typically don’t know how much many of the drugs, tests, referrals or treatments they recommend costs Nor do the patients receiving them. How can we expect to control healthcare spending when the people providing and receiving the service have no information about costs until the bill or payment comes in?
No other industry functions like healthcare when it comes to cost. When you sit down to enjoy a meal at a restaurant, the menu clearly shows what each item costs. A diner knows that the price of a filet mignon is many times that of a hamburger; that is part of her decision when ordering.
Yet when it comes to healthcare, the mentality is, “treat me now, bill me later.” The result: patients are stuck with bills that, whatever their amount, are a surprise.
If we want to curtail the growth of healthcare spending, doctors and patients need insights into the costs of services before they give the green light to delivering or receiving care.