pwc-hri-price-transparency-spotlight-2

pwc-hri-price-transparency-spotlight-2 - Health Research...

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1 | PwC Health Research Institute Spotlight: Price check in the MRI aisle: Hospitals adopt a retail approach to win customers they adjust their approaches to attracting and retaining consumers. These health systems are rethinking their charges and developing innovative ways to communicate them to their customers. Consumers are just beginning to shop for healthcare. According to a survey conducted by HRI in 2014, 26% of American adults said they had contacted different doctors and health systems about prices. 1 By 2015, that number had climbed to 30%. Almost 40% also said they had asked ahead of time for the price A short time ago, it would have been unthinkable for American health systems to publicize how much they charge for medications and medical services. But now, most Americans are facing higher deductibles and other cost-sharing measures; as a result, some consumers are beginning to shop around, diverting business away from health systems and toward standalone operations that advertise their prices and services. This shift has prompted some health systems to think more like retailers as of a prescription or procedure. 2 Consumers today are likely to discover, with a minimal amount of searching online, that standalone clinics often charge less than hospitals for commodity services such as routine blood work, imaging procedures and lab work. This increasingly is important because many consumers report being open to seeking care in new venues. More than one-third of consumers say they would be willing to go to a retail clinic for an imaging procedure, for example. 3 Price check in the MRI aisle: Hospitals adopt a retail approach to win customers US hospitals are losing customers to retail clinics, standalone surgical centers and walk-up medical facilities. To compete, they must make their prices more transparent, accessible and, importantly, defensible. Health Research Institute Spotlight October 2016 Figure 1: Wide variation in pricing exists from one provider to the next Source: PwC Health Research Institute analysis of state-run websites in New Hampshire, Maine, Oregon and Colorado Average New Hampshire consumer looking for a chest CT scan Average Oregon consumer looking for an MRI scan Average Colorado consumer looking for a knee joint replacement Imaging Center Option 2 Hospital Option 1 Hospital Option 2 Hospital Option 1 Hospital Option 2 $2,701 $872 $3,503 $1,252 $81,910 $48,986 Hospital Option 1
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2 | PwC Health Research Institute Spotlight: Price check in the MRI aisle: Hospitals adopt a retail approach to win customers This growing consumerism comes at a time when insurers are actively directing their members to lower-cost providers, even offering financial rewards to enrollees seeking treatments from these alternative venues. Indeed, many health systems are unaware that this type of practice is occurring until they start to lose volume for certain commodity-type services.
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  • Spring '13
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  • Leap year starting on Friday, PwC Health Research Institute, Health Research Institute

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