CMS Releases Hospital Cost Data

Crabcake Johnny

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For the first time, the data showing how much hospitals charges for procedures has been released. Huffington Post, NYT and the Washington Post got advanced notification from the Obama administration as to the publication of the data:

http://www.nytimes.com/2013/05/08/b...wildly-us-data-shows.html?pagewanted=all&_r=0

Medicare Provider Charge Data - Centers for Medicare & Medicaid Services

About 5 years ago the Massachusetts Attorney General deal with a similar issue - why some hospitals were charging, in comes cases, 10 times the amount for the same procedures. Those hospitals claimed their level of care was better which justified the rates.

So a study was done. Findings? Not only did those hospitals not provide better care, but in some cases worse.

http://www.boston.com/news/local/ma...ey_general_says_clout_drives_up_health_costs/

Legislation to solve the issue: http://thinkprogress.org/health/201...o-minimize-disparities-in-health-care-prices/
 
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And there goes the free market.

Some smart attorneys need to be studying up on the Canadian doctor (who turned into a lawyer) case to allow for both a public and private system of health care. Single-payer is coming soon, but only if these yahoos get their wish.
 
And there goes the free market.

Some smart attorneys need to be studying up on the Canadian doctor (who turned into a lawyer) case to allow for both a public and private system of health care. Single-payer is coming soon, but only if these yahoos get their wish.

Don't know - paying Mercedes prices for Chevy care needs to be addressed. But regarding the free market...isn't the definition of a free market where consumers can see prices in advance and make a choice? It's not my right to know if Hospital A is charging $15,000 and Hospital B is charging $6,000 if the level of care is the same?

To me, this is one missing ingredient - total upfront price transparency.
 
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I agree with John, you can't have free markets if you have a monopoly or are non-transparent with your prices.
Free markets are all about making educated decisions based on sound information.
In fact this will only
A) INCREASE competitiveness
B) Allow states to implement monopoly and price-gouging legislation

Remember the states are the 50 laboratories of Liberty.
 
Don't know - paying Mercedes prices for Chevy care needs to be addressed. But regarding the free market...isn't the definition of a free market where consumers can see prices in advance and make a choice? It's not my right to know if Hospital A is charging $15,000 and Hospital B is charging $6,000 if the level of care is the same?

To me, this is one missing ingredient - total upfront price transparency.

Even trying to be an informed consumer is tough to get the exact procedure codes in advance to get the prices.
 
Even trying to be an informed consumer is tough to get the exact procedure codes in advance to get the prices.

This is absolutely no transparency to the system, it isn't a free market. In fact, a cash patient who pays in full and in advance will probably pay more than someone with insurance where the provider gets paid months later. Please explain that one to me.
 
Correct. It's not a free market when I head to the ER for a kidney stone (3 years ago) and only find out the rate when I get the bill in the mail. Having a HSA, it's important to me.

Although I was in pain, I had time a choices. I could have gone to a number of facilities but no pricing is available in advance.

Free market includes competition and there's no competition when rates are a secret. What we need is rates and the quality score. This way I can determine that Doctor Smith's rate of $500 with a score of 85% is out of whack with Doctor John's rate of $250 with a score of 88%. Then the free market can tell Dr. Smith his rates are too high.
 
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