On the TV game show, “The Price is Right,” people guess the price, and if they get it right, they earn valuable prizes and vacations. In healthcare, guessing about the price just isn’t fun for anyone – providers, patients or payors alike.
Optimal pricing involves many factors, with multiple interdependencies. To assure optimal margins across diverse payor plans, and be competitively priced for consumers, the necessary calculations for defining effective pricing must be performed on an ongoing basis, rather than just when a key payor contract is renewed or renegotiated. Healthcare leaders are now connecting the dots on their costs and pricing, and factoring in fresh perspectives on pricing as informed consumerism gains momentum.
Charge like everyone is watching. Informed consumerism requires healthcare organizations to take a fresh approach to pricing. Everyone has a lot at stake in ensuring that the price is right.
As consumers look at hospital pricing, the lack of consistent pricing models across the industry causes confusion. One way to reduce this confusion is to establish pricing standards and a frame of reference about what the standards encompass.Traditional roles are changing rapidly and to retain relevancy healthcare leasers are elevating relationships with patients to even higher levels.
For sustainable service-lines, leaders are connecting the dots between operational performance and financials. They are ensuring that information is current and complete as clinical encounter data is captured and then transformed it into financial transactions in the chargemaster.
Patients today want confidence that the price is right, that their healthcare experience will be well-handled, and that their information will be correct, current and accurate – all of the way from their clinical encounter through to their billing.
In the weeks ahead, we’ll discuss this further, so check back for the latest on this blog. Meanwhile, read more in the Executive Insight article, “Revenue Cycle and Pricing Transparency.”
Is your organization ensuring its pricing is competitive? Let us hear your pricing story.
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