pricing transparency + defensibility
Do your patients know the price?

With recent Federal and State legislation hospitals are now required to make their prices publically available. The Affordable Care Act and many individual State regulations now require that patients have access to hospital prices however there is still great uncertainty over exactly what that means.


In May, 2014, Cleverley + Associates surveyed hospital financial executives across the country to find out what “Price Transparency” meant to them and what they were planning to do to adhere to any new regulations. The results of the survey are listed below along with a link to a corresponding article published in hfm magazine written by our consultants.


Over the past decade, we have helped hundreds of hospitals across the United States create reasonable and defensible pricing strategies while still achieving budget objectives. It is our goal to continue to help hospitals monitor and adjust prices to better serve their communities, meet budget objectives, and adhere to legislative requirements.


We partner with hospitals to develop long-term strategies that lead to enhanced value to their communities.

What sets us apart from other vendors?

  • A thorough review of your hospital’s current charge position
  • Ongoing dialogue with your management team about your objectives, assumptions, and concerns throughout the project
  • Unlimited modeling and access to our consultants throughout the engagement for one flat fee (no hidden charges or additional fees)
  • The most accurate impact predictions in the industry
  • A presentation-ready “Pricing Defensibility Assessment”
  • Web-based software for additional price adjustment testing
  • A comparison of your current prices, proposed prices, and peer prices by encounter to help you address pricing transparency concerns
  • Customized reporting to help you meet state and/or federal pricing disclosure requirements
  • A complete suite of supporting reports and detailed comparative data by facility, department, and encounter

Download our Fact Sheet on Pricing Transparency

Hospital Charge Index®

Cleverley + Associates developed the Hospital Charge Index® (HCI) to evaluate the charge positions of the hospitals across the US. This facility-level metric compares a hospital’s Medicare charge per discharge and Medicare charge per visit (both adjusted for case complexity and wage index differences) with the U.S. medians for each value. By creating a single metric that accounts for both inpatient and outpatient charges we can assess and compare overall charge positions.


The images below come from the State of the Hospital industry – 2014 Edition and show the regional median HCI values (map) and the 3-year trend of the all US median (graph). Facility-specific HCI values were used in comparing the survey results and the article published by hfm (both listed below).



Source: State of the Hospital Industry - 2014 Edition by Cleverley + Associates



2014 Hospital Price Transparency Survey Results

In April 2014 we surveyed hospital financial executives across the US to get their opinions and thoughts and “price transparency”. This topic has not only been receiving a lot of press, but has also been addressed in many state and national legislative initiatives, including the Affordable Care Act.


The complete listing of the survey questions and corresponding responses are listed below.


+See all the questions and results from our survey here!
Click on any one of the questions we asked to learn more about the responses we received:
1 - What does "pricing transparency" mean to you?
2 - Is pricing transparency a strategic initiative for your hospital in 2014?
3 - Is pricing transparency a factor you consider when planning yearly rate adjustments?
4 - What impact will pricing transparency have on your commercial payer relationships?
5 - How will pricing transparency impact your overall pricing & budgeting strategies?
6 - How do you currently communicate prices to your patients?
7 - What do you feel is driving the push for pricing transparency?
8 - What is the single greatest challenge of complying with or creating a pricing transparency policy?
9 - What costs do you foresee associated with creating & maintaining a pricing transparency strategy?
10 - Are you more concerned about your hospital's charges being transparent or defensible?
11 - If you make your charges public (transparent), are you confident that you can defend and explain those charges when compared to other facilities?
12 - What makes a pricing strategy defensible?
13 - Achieving your ideal picture of "pricing transparency" at your organization will be:
14 - Transformational pricing initiatives (e.g., large charge reductions) without changes to payment terms at your organization would be:




How Hospitals Approach Price Transparency
Scott Houk, James O. Cleverley
The issue of price transparency has become more prevalent in health care recently, but hospitals may have different views of the concept depending on their relative charge levels.

Price transparency has received an enormous amount of attention over the past two years with the publication of charge data for consumers and media reports about patients who received exorbitant hospital bills. The healthcare industry is responding, as illustrated by HFMA’s Price Transparency in Health Care report, released this past spring.


An aspect of this complex issue worth exploring further is whether different hospitals approach price transparency differently based on their current charge positions (i.e., high or low). We surveyed 78 hospital finance leaders representing 185 hospitals this past April about their organizations’ price transparency practices and plans. We then linked the survey results to our database of hospital charges to identify correlations between the organizations’ price transparency approaches and their overall charge positions.



To download the full article, please let us know a little bit about yourself first:








Request a Free Custom Price Transparency Review

How are hospitals approaching price transparency? Sign up for a free, 30-minute review to discuss the top trends and issues related to creating a price transparency policy. We will address your specific concerns and show you how you can create and/or evaluate a price transparency policy for your hospital.






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