Healthcare Shenanigans: Hospitals have no idea how much to charge for their procedures
This really shakes any shred of faith I had in the medical services industry and reveals just how much is dictated by insurance firms.
Let's say you want a hip replacement. You're older, but not at Medicare age. You have no insurance but have a pile of cash. How much would a hospital charge for the hip replacement?
This study found that half the hospitals they talked to were wholly unable to provide a price. The other half had prices that varied by a factor of ten.
The quotes she received might surprise even hardened health care economists: only about half of the hospitals, including top-ranked orthopedic centers and community hospitals, could provide any sort of price estimate, despite repeated calls. Those that could gave quotes that varied by a factor of more than 10, from $11,100 to $125,798.
Ms. Rosenthal’s grandmother was fictitious, created for a summer research project on health care costs. But the findings, which form the basis of a paper released on Monday by JAMA Internal Medicine, are likely to fan the debate on the unsustainable growth of American health care costs and an opaque medical system in which prices are often hidden from consumers.
“Transparency is all the rage these days in government and business, but there has been little push for pricing transparency in health care, and there’s virtually no information,” said Dr. Peter Cram, an associate professor of internal medicine at the University of Iowa, who wrote the paper with Ms. Rosenthal. He added: “I can get the price for a car, for a can of oil, for a gallon of milk. But health care? That’s not so easy.”