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Strategic Initiative: Strategic Pricing And Transparency

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Strategic Initiative – Strategic Pricing and Transparency
The financial burden for healthcare is continuing to shift to employers and patients. In the past patients were only responsible for their copay and their insurance premiums were relatively low. However, many patients now have high deductible health plans or health savings accounts. As healthcare costs rise employers are passing the costs onto their employees. Patients who are responsible for more of their own healthcare costs out of pocket are now demanding to know the prices of services up front. For non-emergent care patients are now comparison shopping for health care services and it is creating a need for strategic pricing and transparency at Mercy and other healthcare providers. …show more content…

Many of these tests are likely to be impacted by future site neutral payment changes. Currently Medicare pays differently for outpatient procedures and tests based on the site of service (Dyrda, 2017). For instance, Medicare would pay a significantly higher amount for an MRI performed in a hospital as opposed to a physician’s office. The rationale behind the different payment structures initially was that there is much more overhead cost to cover at a hospital. The government and CMS have started making changes to eliminate the disparity between sites of service and it is projected that payments will be made in the near future on a site-neutral basis, or everyone will be paid the outpatient rate and there will be no more higher hospital …show more content…

Mercy has good quality and is a low-cost provider, yet has historically had lower market share than its competitors. To be successful in the changing healthcare landscape it will need to analyze its programs and services and implement market protection and growth initiatives. Mercy can add a level of differentiation to the services that it offers to persuade patients to choose it instead of its competitors (Moseley III, 2009). Mercy can also be successful through a thorough analysis of pricing and costs and a low-cost leadership strategy. Consumers are demanding transparency in pricing and desire the ability to comparison shop for healthcare. Mercy should proactively address the demands of patients and coupled with its pricing strategy incent more patients to choose it over its

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For example, hospitals can ensure that all written policies for assisting low-income patients are applied consistently. In addition, hospitals can review their current charge structures and ensure that they are reasonably related to both the cost of the service and to meeting all of the community’s health care needs. Finally, hospitals could also implement written policies about when and under whose authority patient debt is advanced for collection. The Financial Impact of MACRA

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This will shift impacts the provider’s bottom line because with the increases in drugs, supplies and salaries and the decrease in reimbursements, hospitals profit margins will

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In 2014 over 40 soldiers have been killed or severely injured in overseas conflicts, in places like Iraq and Afghanistan. Some died due to lack of medical care being in close proximity to the soldiers, even though the number of casualties is low it can be reduced even further. At the moment soldiers ,in places like Iraq and Afghanistan, are at the mercy of military's budget and allocation of funds. But, now that the USNS Mercy is returning from southwest Asia it can hopefully resupplied and redeployed into the areas that need them most not just in the middle east. As you can guess, my real life example of mercy is naval hospital ship the USNS Mercy returning from service in southwest Asia.

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Growing up, I have had my fair share of medical encounters, and was even on state insurance for most of my life. This meant that exceptional care was not always in reach, as I had to visit overflowing medical facilities and was unable to choose the better treatment options due to finances. Due to this, I advocate for my patient’s daily at work by calling insurances and working out the logistics of getting them the care they need, or helping them find resources if we hit a dead-end. Putting their care first, each and every day, has helped me advocate for patients of all populations.

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As the healthcare landscape continues to shift, medical providers and hospitals are continuously being challenged to develop clear and concise visions and redesign care delivery in ways that will usher proper transitions to value-based care. As value-based healthcare continues to take root, more and more hospitals and providers are finding themselves with little option but to join the movement. However, the jump from previously utilized fee-for-service models to value-based healthcare is not an easy one, and many healthcare organizations are finding it difficult to do so. The greatest challenge lies in successfully making the transition from volume to value-based healthcare in ways that are financially stable. Such inherent difficulties faced by those within the healthcare system are what have necessitated strategic

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One of the dominant factors that could motivate intervention in healthcare by the government is equity factor. This factor is being boosted through the implementation of user fee system. The user fee system tends to promote equity through price discrimination, that is, charge the poor less than the rich for a given health service or product. Obviously, price discrimination contributes to the market failure had been seen as an economic rationale to encourage

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