The Indiana Policy Review recently compared the bill for a hernia operation at an Indianapolis hospital with the price for the same procedure advertised online by a small entrepreneurial surgery center in Oklahoma. The Indiana hospital received $21,112.81 from the patient and his insurance company. The surgery could have been performed for 85 percent less in Oklahoma. What’s more, the patient would have been guaranteed the price before surgery.
via Mega-hospitals contribute to high health costs – Reporter.net: Opinion.
Keep in mind, it isn’t the size per se of the hospital that is to blame. It is the way in which they bill for services and the fact that 98% of revenue comes from a third-party, much of it from government payers. The billing cycle with all of its codes, contractual stipulations, inflated charges, administrative expenses is at the heart of what is driving prices. By its very nature it lacks transparency or the ability to offer advance pricing.
Reblogged this on IP4PI – Independent Physicians for Patient independence.