Feedback Form
Join, Follow & Connect
Join Modern Healthcare's LinkedIn group Follow Modern Healthcare on Twitter Join Modern Healthcare's Facebook group Follow Modern Healthcare's Pinterest board Modern Healthcare's Flickr page Modern Healthcare's YouTube Channel Get a Modern Healthcare news feed
 
Comment Buy Reprints Print Article Share on LinkedIn Share on Facebook Share on Twitter Email this page to a colleague
Healthcare Business News
 

Systems move to boost pricing 'defensibility'


By Beth Kutscher
Posted: March 22, 2013 - 3:30 pm ET
Tags:

Healthcare systems are taking steps to address the “defensibility” and transparency of the way they bill for services—an issue that came into the spotlight earlier this year in the wake of a controversial Time magazine cover story.

But it's not only uninsured patients—whose stories were much of the focus of Steven Brill's 24,000-word article, “Bitter Pill”—who are asking questions about why their hospital bills are running in the tens of thousands of dollars for short stays and simple procedures.

Hospital pricing has also been a key issue for payers, particularly America's Health Insurance Plans, which has pegged price increases as a major factor behind rising premiums.

“I think there's a real movement toward more strategic thinking about pricing and its defensibility,” said Keith Neilson, CEO of Craneware, which makes software for healthcare billing, chargemaster management, auditing and Medicare compliance.

Advertisement | View Media Kit

 

He noted in an e-mail that the shift was already beginning “years” before the Time magazine article in response to cost pressures.

Yet with the idea of a “chargemaster” now in the public eye, hospitals once again have been pulled into the ongoing national discussion about healthcare costs—and not in a positive light.

The American Hospital Association responded to the criticism in a news release, pointing to the Patient Friendly Billing Project and other efforts to simplify and explain billing information.

“Today’s hospital bill is a symptom of a broken payment system,” the AHA said, citing a web of governmental regulations, the expectation that facilities will provide care even to those who can’t afford it and the vast resources it takes to run a hospital.

Todd Craghead, vice president of revenue cycle organization for Intermountain Healthcare, Salt Lake City, said he was not aware of increased patient questions about their bills after the Time story.

But he said in an e-mail that the system has created “focus teams” over the past several years to “review, improve and strengthen” its pricing strategies “so that they support the environment we are moving towards as it relates to healthcare reform.”

He added that several work groups regularly evaluate the system’s pricing practices, and Intermountain also reviews its own information against industry benchmarks.

Neilson noted that as financial pressures build for hospitals, they will continue to model different pricing scenarios.

“A well thought out pricing strategy that has a basis in cost, especially in pharmacy and patient-chargeable supplies, helps give you defensible pricing, which is the aim of the clients I’ve spoken to,” he said.


What do you think?

Share your opinion. Send a letter to the Editor or Post a comment below.

Post a comment

Loading Comments Loading comments...

Search ModernHealthcare.com:



Daily Dose MH Alert MH AM HITS Modern Physician Most Requested

LinkedIn Twitter Facebook Flickr News Feeds Google Plus Page - Publisher

 

Switch to the new Modern Healthcare Daily News app

For the best experience of ModernHealthcare.com on your iPad, switch to the new Modern Healthcare app — it's optimized for your device but there is no need to download.