Should Healthcare Pricing Be More Transparent?

 

Healthcare prices have continued to rise in the United States in recent years, and no solution has been agreed upon. Making a complicated situation even hard to solve is the fact that the supply chain is much more complex in healthcare than in the exchange of other goods and services.

One of the major qualms about healthcare pricing is its lack of transparency. The negotiated rates between pharmaceutical companies and hospitals, insurers and pharmacies are private. This seemingly makes it difficult for consumers to shop around for lower prices.

A new executive order signed in June calls on the Department of Health and Human Services to force these negotiated rates to be publicized. This is designed to increase transparency of price and create market competition. Ideally, this will lower prices for consumers, but consensus has is hard to come by on the topic.

“Some states have already passed price transparency laws, like New Hampshire and some others, and again the story isn’t that great, at least the evaluation suggests they haven’t made an enormous impact or any impact at all on prices,” Mark Pauly, a professor of healthcare management at the Wharton School of Business at the University of Pennsylvania said.

Industry insiders are unsure of the impacts this transparency will have. Due to the nature of insurance and the way drug prices are established, transparency may not yield true competition, according to Pauly.

“You can’t look up in the Wall Street Journal, ‘what’s the going price today for a hospital day or a doctor visit’,” Pauly said. “These things are negotiated and typically the market structure for hospitals is one of oligopoly, with just a few hospitals in a typical town.”

The executive order did not spell out specifics but asked HHS to develop a policy that increases transparency.

For the latest news, videos, and podcasts in the Healthcare Industry, be sure to subscribe to our industry publication.

Follow us on social media for the latest updates in B2B!

Twitter – @HealthMKSL
Facebook – facebook.com/marketscale
LinkedIn – linkedin.com/company/marketscale

Follow us on social media for the latest updates in B2B!

Latest

2024
Mark Tina Envisions Differences to the Verizon Partner Network in 2024
December 1, 2023

In the dynamic telecommunications landscape, Verizon’s Partner Network continues to evolve, adapting to new trends and opportunities. For another segment featuring Mark Tina, VP of Indirect Channel Distribution and Channel Chief at Verizon Business Group, he explores exactly what types of significant changes and advancements the Verizon Partner Network will see in 2024. In this […]

Read More
verizon business group
Mark Tina Explores the Importance of Partners in Verizon Business Group Success
December 1, 2023

A special episode of The Verizon Partner Network focuses on an examination of an industry marked by fierce competition and rapid innovation. But most importantly, how the role of partnerships in a company’s success is increasingly vital. Mark Tina, the VP of Indirect Channel Distribution and Channel Chief at Verizon, details why partners are essential […]

Read More
aspects
Mark Tina Highlights Three Pillars of Success in Verizon’s Partner Network
December 1, 2023

For a continuation episode of The Verizon Partner Network’s special segment with team leaders, Mark Tina, VP of Indirect Channel Distribution and Channel Chief at Verizon Business Group, joined again to outline the three top aspects that define the Verizon Partner Network and its approach to collaborative success. The video centers on Tina’s explanation of […]

Read More