In a recent study completed by the New York State Health Foundation, the study dissects New York Hospital Facility pricing. The findings are intriguing and may shed some light on the pricing system across the country as a whole. One of six major takeaways that speaks for itself is:
“Certain contract provisions contribute to market dysfunction by hindering competition, product innovation, transparency, and cost containment strategies.”
One of the other key findings suggests that higher prices do not always correlate to higher quality. Likewise, hospitals that charge lower rates do not necessarily provide a lesser quality of work.
Everyone understands that hospitals provide valuable services that they should profit from to continue to uphold the highest standard of practice. However, the problem comes when a system gets a feedback loop that allows for hospital facilities to egregiously price claims as they come through.
Some hospitals get away with charging egregious prices because it is oftentimes overlooked when it is blindly passed through the claims process. As a result, employers and employees alike should be aware of these unreasonable claims to ensure that health care services are not overcharged.
This is why ClaimDOC performs the work that it does. We believe that everyone should pay a fair rate for the health care services that they receive. While also recognizing hospital facilities and providers should get paid for their work fairly and in a reasonable time.
Review the complete study Why Are Hospital Prices Different? An Examination of New York Hospital Reimbursement from the New York State Health Foundation for more information.