Understand the root causes of hospital price variation
Health care in the commercial market is an industry without set prices – where the cost of goods and services are determined by negotiations between providers and intermediaries like health insurance companies and much more rarely employers or other health care purchasers themselves.
Providers charge certain prices for the health care services they deliver, then health insurance plans (or other types of purchasers), try to negotiate for discounts off of the charged price. Because of the relative negotiating strength of different health plans or purchasers within and across health care markets, we end up paying wildly different amounts for the same services with every different combination of payers and providers.
These resources offer a closer look at how prices are set, why price transparency matters, and how the RAND Hospital Price Transparency Studies are providing information that could shake up the health care marketplace.
What causes hospital price variation?
Why is the Hospital Price Transparency Project so important?
In the News
Top news in the hospital price transparency field. View more related articles.
February 1, 2021New York Times
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