Consumers will change how they shop for healthcare The recent legislation requiring transparency from both providers and payers is only one part of the equation. The next step is changing consumer behavior to encourage them to utilize that information. Having prices made publicly available doesn’t have a big impact unless consumers know how to access and use that information. They need to feel empowered to shop for their healthcare—something they aren’t used to doing.
Historically, consumers haven’t been able to shop for healthcare the same way they shop for virtually any other product or service in a consumer-based economy. Consumers are given limited options (if any) for choosing an insurance provider and are further limited to only seeing a provider within their network (or else face a higher co-pay). Consumers haven’t been trained to compare the best prices for their healthcare provider because they previously haven’t had upfront access to pricing information.
Consumers need two pieces of information to make the best decisions about their healthcare: price and quality. These two factors are often conflated; we tend to assume (sometimes falsely) that the more expensive something is, the higher its quality. That’s certainly not always the case in healthcare, but when it comes to making a decision about who to trust with their health, consumers are willing to pay a premium (if they can afford to) in exchange for quality care.
That’s why presenting both pieces of information is so critical. Once accurate, easy-to-read pricing information is readily available, price will become yet another factor that helps consumers make informed decisions about healthcare services and providers. When consumers can compare prices between providers, providers will then need to justify why their price differs from the provider across town (i.e. demonstrate quality). Developing an infrastructure to better educate patients on what their treatment entails and why it costs what it does will not only create a more informed patient but also help to create a stronger business case for the provider.
Rather than blindly choosing a provider, consumers will feel empowered to be intentional with the provider they choose for their family.
The consumer revolution will continue We can empower patients by meeting them where they are. Not only do they need transparent and accurate information about pricing, but they also need the right channels to find a provider, understand their coverage and benefits, and make payments.
