Forum Networking Webinar: Developing Rational Health Service Prices – Key Takeaways

During this Sept. 18, 2018, HFMA Forum webinar, Jamie Cleverley, president, Cleverley & Associates, cited health pricing research and techniques for evaluating inpatient versus outpatient charges, as well as determining hospital charge reduction implementation. 

Key takeaways from the webinar:

Significant price differences exist between hospitals and freestanding facilities. Prices for imaging, lab services, surgical services, and therapy can vary between 99 percent and 229 percent.

Between 2012 and 2015, a health service pricing paradigm shift occurred. Research during that time period found that the role that cost plays relies on charge reduction.

Hospitals can take three approaches to hospital price defense. The ROI model, which isolates the price variable from other cost variables; peer position, which uses benchmarks with peer hospitals; and cost/relative weight markup, which sets prices at one multiple of cost or relative weight.