How will price transparency change the way hospitals charge for procedures?
Medicare has released new data on the prices hospitals charge for 100 of the most common in-patient treatments and procedures, which are found to vary widely from one healthcare service provider to another.
In Los Angeles, one hospital was found to have charged on average $223,000 for knee and hip replacement surgeries, but at another area hospital, the same procedure only cost around $32,000.
What accounts for these pricing disparities? How does the difference in pricing affect consumers? How do hospitals determine healthcare pricing?
Bob Kocher, former Special Assistant to the President for Healthcare and Economic Policy on the National Economic Council, partner at Venrock Healthcare Technology, serves on the Board of Castlight Health and the Advisory Boards of Harvard Medical School Health Care Policy Department, USC Leonard D. Schaeffer Center for Health Policy and Economics where he is also a Senior Fellow