A recent article in Time Magazine (“Bitter Pill-Why Medical Bills Are Killing Us”, by Steven Brill), did a fine job of thrusting into the spotlight the profiteering behavior of some providers in our health care system. While the article covered a lot of ground, his discussion of the behavior exhibited by hospitals and hospital systems was particularly interesting. That is where I will focus.
To summarize, hospitals are wildly inconsistent in what they charge for specific services and service packages. By packages, I mean the room, the procedure(s), the doctors, and the drugs required to treat you. The costs are frequently hidden, and if pressed, hospitals will quote from a greatly inflated “charge master”. One result is “non-profit” institutions that are incredibly profitable, while their patients experience financial devastation.
It almost seems as if the behavior is somewhat predatory (my words). So what should we do?
Let’s start here- hospitals should be required to post conspicuously a price list for the 100 most common services or service packages.
If you are considering a hospital for an uncomplicated childbirth or a knee arthroscopy or a hernia repair, you should be able to look at a list and see what it costs. The price should include all services, tests, supplies, labs and doctors expected to be involved. If the hospital chooses to post it’s charge master, fine (as opposed to an insurance rate, which may be prohibited by their contract). Posting the charge master will allow consumers to compare prices. Even if you wind up in the hospital because of an emergency, you can transfer to a more reasonably priced facility once the immediate crisis has passed.
Just this would prevent, or at least lessen, some of the financial horror stories described in the article.
So what do you think?