"One of the very basic functions of any health care system should be that getting sick doesn't jeopardize you financially,'' Hsia said. "But in America, that's exactly what people are afraid of, and rightly so. Right now, the status quo is that no one knows what others charge, no one knows what others pay. We have a system that isn't structured in the interest of the patient.''
"Price shopping is improbable, if not impossible, because the services are complex, urgently needed, and no definitive diagnosis has yet been made,'' the researchers wrote.
Moreover, even if patients had the time and expertise to price shop, hospitals charge inconsistent prices for seemingly similar services.
Much of the issue stems from the complex and often arcane practice of medical billings in which patients are not necessarily billed for their actual cost of care.
Insured patients "are shielded from charges, while the underinsured or uninsured see staggeringly high numbers without understanding what the charges mean, let alone if they are appropriate,'' the authors said.
The researchers analyzed patients hospitalized for appendicitis in 2009. The patients were between the ages of 18 and 59, and were routinely discharged home.
Among the key findings:
- Charges were higher for older patients, and slightly higher for Medicaid patients as well as uninsured patients;
- County hospital charges were nearly 37 percent lower than nonprofit hospital charges;
- For-profit hospital charges were about 16 percent higher.
Thursday, June 7
How much does Healthcare Cost???
I just had a discussion with a young, very intelligent customer of mine the other day about how difficult it was for him to get tests done that were deemed necessary by his doctor. Was the facility in his network? Which tests were even ordered? How much would it cost him after his co-pay? Lots of confusion out there even if you understand how the system is supposed to work.
