One of the assumptions of value-based care is that if consumers are aware of price, then they can make better decisions about the healthcare services they receive. In an effort to encourage this efficiency in healthcare, government regulation and policy has been designed to promote transparency of quality and cost information. For this Discussion, examine the following scenario and consider how regulation and policy on hospital cost transparency might improve economic efficiency.
How regulation and policy Improve Economic Efficiency Scenario
On behalf of consumers, employers, and local purchasers in your market are committed to slowing healthcare costs by improving visibility on hospital prices. A recent media story reveals that prices in your local market were the highest in the state.
You were a member of a private sector consulting service that has been hired to help a hospital address transparency issue. The hospital would like to be more transparent in their cost and fee relationships with providers.
To prepare for this Discussion:
· Review the scenario provided. What are the advantages of transparency for both the hospital and the consumer? How might hospital cost transparency improve economic efficiency?
· Consider current (last 5 years) regulation and policy to compare hospitals based on their costs. Locate and review literature to support your recommendations.
Post a cohesive response to the following:
· Analyze advantages of transparency for both the hospital and the consumer. Include how hospital cost transparency might improve economic efficiency.
· Propose recommendations for regulations and policy that could be used to compare hospitals based on their costs. Defend your recommendations.
Support your response by identifying and explaining key points and/or examples presented in the Learning Resources.