Price in Healthcare

Running head : PRICES IN HEALTHCARE

Prices in Healthcare

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Price in Healthcare

As opposed to the situation in other consumer services markets , there is a general lack of transparency in market-based pricing procedures in health care . It is practically almost impossible for patients to make coherent comparison of shop prices to medical services on a price basis This is mainly because providers of medical services will typically never disclose the prices of their services prior to the service . Other impacting conditions of

health care prices include programs such as Medicare- a government mandated insurance program

For transparency to be there should be an open advertisement of the price of a specific service . This allows for consumers to choose which products or service provider to deal with . In contrast to this , the United States medical service industry do not allow for patients ' access to any pricing information until such a time after which the services have been offered . California Healthcare Foundation conducted a study which indicated that among all visitors in hospitals asking for pricing information , only 25 were able to access the same in a single enquiry or visit to a hospital (Baker , 1998 , pp . 28

Majority of Americans (85 ) have health insurance and as such they do not make direct payments for their medical services (Baker , 1998 , pp 29 . It is the insurance companies that negotiate and pay for these services for their clients . Thus medical providers usually disclose their pricing schedules only to such...