Healthcare Price Transparency Initiatives may Fall Flat due to Systemic Factors, Expert Says
Niall Brennan, a leading expert on healthcare cost drivers, is among the skeptics who doubt the ongoing price transparency push can result in a more efficient system. An obvious drawback of the federal initiative on hospital price transparency has been the lack of compliance. Various studies since the regulations took effect Jan. 1 have reported nationwide compliance rates of well under 50%. “If you’re only looking at 50% of the hospitals in your area, you don’t actually have true transparency,” Brennan said. “You need to be able to compare prices at every single hospital in order to be able to make an informed decision.”
The biggest impediments to establishing an efficient pricing system can’t be solved by spurring more hospitals to comply with transparency mandates, Brennan said. Rather, the issues stem from expecting consumers to navigate such a complex industry and shop for healthcare with a transactional mindset — especially in scenarios where they have an urgent medical need, for example, or face language barriers.
Did you find this useful?