(continued from page 5) vagueness of health care pricing.
cost calculators, but other available appli-
cations include MyMedicalShopper, MD-
save, Amino, and Fair Health just to name
a few. The applications vary in their offer-
ings but can be a valuable tool for patient
shopping. The market for new applications
is growing quickly. These applications can
also be a critical source for providers to
better understand their own pricing deci-
sions. Even though the tools can be useful,
they are seldom used by patients even when
provided. The reasons appear to be that the
cost burdens of health care are still tolerable,
patients trust their physician’s recommen-
dations more than the tool , and the pricing
tools are still not able to deal with all the Price transparency is a difficult issue
because of the various payment models,
vast differences between charges and col-
lections, patient attitudes to cost, and the
various competing interests of stakeholders.
Regardless of what they do with it, law-
makers and patients want the information.
Providers need to take a close look at their
own pricing, specifically at those services
that could be considered “shoppable.” These
services are elective, available from multiple
providers in the same geographic location
and are typically thought of as commodities.
The provider should not necessarily try to
achieve the lowest cost but understand the
true value posting to the customer. This may
change based on provider’s brand names,
but should be incorporated into their stra-
tegic decisions and their understanding of
the market. With growing concerns of price
transparency by consumers, providers will
need to take a close look at their cost, their
position in the market and their overall
market strategy. It remains to be seen if
this really lowers cost, but it will almost
certainly make providers better understand
their own pricing.
Dr. Zaring is an anatomic and clinical patholo-
gist with Louisville Pathology Associates and
practices at Jewish Hospital.
STAY
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APRIL 2018
7