Why is Price Transparency Important in Healthcare?
With price transparency becoming an increasing focus in healthcare, it’s important to understand the benefits transparency has with your patients and the correlating impact it has on patient satisfaction.
When a patient is aware of all aspects of their care, they feel confident in their provider and course of treatment. According to Robert Wood of the Johnson Foundation, “Health economists and other experts are convinced that significant cost containment cannot occur without widespread and sustained transparency in provider prices.”
According to Public Agenda, more than half of Americans say they have tried to find the cost of procedures or care, and the ones asking are looking for value. “The cost of care for medical services can vary significantly across health care providers,” Tom Meier, vice president of Market Solutions at BCBS of Illinois, Montana, New Mexico, Oklahoma & Texas, told HealthPayerIntelligence.com in a written statement. “It’s important for members to have access to transparency tools that provide meaningful, actionable information, such as comparing quality and cost metrics to make informed decisions to get the best health care value.”
Providers that deliver financial transparency are aiming to attract, acquire and retain the loyalty of these patients by providing a seamless financial experience. Without a smooth financial journey, patients are overwhelmed by multiple bills and statements, and are left feeling unclear regarding their financial responsibility.
Nearly 25% of practice revenue comes directly from the patient. With the rise in high deductible health care plans (HDHP) many patients are finding this burden too heavy to bear, which is leading to bad debt increases for healthcare organizations nationwide. By understanding the new financial challenges and opportunities your patients are facing, you can create a patient focused financial experience to aid in collections and bill remediation.
Currently only 20% of providers have implemented tools to help give their patients full price transparency. The ability to exceed your patients’ expectations by sharing the cost of their care upfront allows them the ability to plan for their treatment. This, coupled with the ability to adopt a payment plan, will ensure the bad debt for organizations decreases as their patient satisfaction increases.
ImagineDiscovery™ coupled with HonorCare® gives ImagineBilling™ clients the ability to show their patients exactly what they will owe and give them options to pay their bill in a way that best meets their needs. Providers need to view their patient with a holistic lens – their income, life circumstances and outstanding debts – which can help the patient be more than just a number. Practices that provide flexibility in their offerings will not only reduce their bad debt but create loyal customers that not only pay their bills but refer their friends as well.