Hospital and health plan price transparency regulations have revealed what was previously suspected but, for legal and technical reasons, unknowable: the price of a medical service or procedure depends on where it is done and who is paying for it. Two commercially insured patients receiving identical medical care at the same facility on the same day can incur very different costs, entirely dependent on their plan’s negotiated rates with that hospital. If healthcare value is defined as the relationship between the health outcomes achieved and the cost of delivering those outcomes, then by logic, variation in healthcare prices for the same service at the same hospital is an example of waste.
Read the full article: How Regression to the Mean in Commercial Rates Would Impact Healthcare Costs //
Source: https://www.trillianthealth.com/market-research/studies/how-regression-to-the-mean-in-commercial-rates-would-impact-healthcare-costs