Pediatric Price Transparency: Still Opaque With Opportunities for Improvement

Author:

Faherty Laura J.12,Wong Charlene A.23,Feingold Jordyn4,Li Joan5,Town Robert267,Fieldston Evan258,Werner Rachel M.2469

Affiliation:

1. Robert Wood Johnson Foundation Clinical Scholars Program,

2. Leonard Davis Institute of Health Economics,

3. Division of Adolescent Medicine, University of Pennsylvania and Children’s Hospital of Philadelphia, Philadelphia, Pennsylvania;

4. Division of General Internal Medicine,

5. Perelman School of Medicine, and

6. The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania;

7. The National Bureau of Economic Research, Cambridge, Massachusetts;

8. Department of Pediatrics, Children’s Hospital of Philadelphia, Philadelphia, Pennsylvania; and

9. Center for Health Equity Research and Promotion, Corporal Michael J. Crescenz Veterans Affairs Medical Center, Philadelphia, Pennsylvania

Abstract

OBJECTIVES: Price transparency is gaining importance as families’ portion of health care costs rise. We describe (1) online price transparency data for pediatric care on children’s hospital Web sites and state-based price transparency Web sites, and (2) the consumer experience of obtaining an out-of-pocket estimate from children’s hospitals for a common procedure. METHODS: From 2015 to 2016, we audited 45 children’s hospital Web sites and 38 state-based price transparency Web sites, describing availability and characteristics of health care prices and personalized cost estimate tools. Using secret shopper methodology, we called children’s hospitals and submitted online estimate requests posing as a self-paying family requesting an out-of-pocket estimate for a tonsillectomy-adenoidectomy. RESULTS: Eight children’s hospital Web sites (18%) listed prices. Twelve (27%) provided personalized cost estimate tool (online form n = 5 and/or phone number n = 9). All 9 hospitals with a phone number for estimates provided the estimated patient liability for a tonsillectomy-adenoidectomy (mean $6008, range $2622–$9840). Of the remaining 36 hospitals without a dedicated price estimate phone number, 21 (58%) provided estimates (mean $7144, range $1200–$15 360). Two of 4 hospitals with online forms provided estimates. Fifteen (39%) state-based Web sites distinguished between prices for pediatric and adult care. One had a personalized cost estimate tool. CONCLUSIONS: Meaningful prices for pediatric care were not widely available online through children’s hospital or state-based price transparency Web sites. A phone line or online form for price estimates were effective strategies for hospitals to provide out-of-pocket price information. Opportunities exist to improve pediatric price transparency.

Publisher

American Academy of Pediatrics (AAP)

Subject

Pediatrics,General Medicine,Pediatrics, Perinatology and Child Health

Reference23 articles.

1. Hostetter M, Klein S. Health care price transparency: can it promote high-value care? The Commonwealth Fund. 2012. Available at: www.commonwealthfund.org/Newsletters/Quality-Matters/2012/April-May/In-Focus.aspx. Accessed August 10, 2017

2. Catalyst for Payment Reform and Health Care Incentives Improvement Institute. Report card on state price transparency laws. 2015. Available at: www.catalyzepaymentreform.org/images/documents/2015_Report_PriceTransLaws_06.pdf. Accessed November 2, 2015

3. United States Government Accountability Office. Health care transparency: actions needed to improve cost and quality information for consumers. 2014. Available at: www.gao.gov/assets/670/666572.pdf. Accessed November 2, 2015

4. The role of states in improving price transparency in health care;Sinaiko;JAMA Intern Med,2015

5. Extreme markup: the fifty US hospitals with the highest charge-to-cost ratios;Bai;Health Aff (Millwood),2015

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