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.
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
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
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.