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Business Analytics Will Help Healthcare, Just Not Overnight
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addicted2data
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addicted2data,
User Rank: Apprentice
7/3/2014 | 3:26:13 PM
No transparency, no competition = no change
Without transparency and competition, many healthcare providers see no need to change.  Fortunately the ball has started rolling on that, with data being made publicly available by CMS.  Like any other industry, when providers have true competition and cost pressure, they'll either have to figure out how to compete or go out of business.  Either is probably fine...
Alison_Diana
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Alison_Diana,
User Rank: Author
7/3/2014 | 2:08:52 PM
Re: Find the Price Tag
True, @David, and we're already seeing evidence of that as the prices of some procedures get published. It's a big step forward for transparency and savings! The USA Today report was interesting though in that it seemed to show some (and it is some, not all of course) providers don't have an accurate picture of costs. I realize the mark-up varies depending on the payer, but surely supplies have a fixed cost once an organization has cut the check? 
David F. Carr
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David F. Carr,
User Rank: Author
7/3/2014 | 12:07:03 PM
Re: Find the Price Tag
Some of what you're talking about is related to the third-party payment system, where insurance covering the cost of care leaves consumers out of the picture -- except now that's changing pretty rapidly. Healthcare organizations will need to provide a better value as more of the burden is shifted onto price conscious individuals.
Alison_Diana
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Alison_Diana,
User Rank: Author
7/3/2014 | 10:03:56 AM
Re: Find the Price Tag
It also explains those hair-raising $25 Tylenol bills, right?! Seriously, though, it's incredible that some healthcare providers have so little insight into their real costs. They have real, hard-number expenses -- taxes, salaries, supplies, utilities, insurance... -- so you'd certainly imagine there's a mark-up formula or multiple formulas, depending on Medicare/caid/private/self-pay/uninsured, they have to ensure profitability or viability if non-profit.
Michael Endler
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Michael Endler,
User Rank: Author
7/2/2014 | 11:34:19 PM
Re: Find the Price Tag
Wow, hospitals, in the midst of a divided national debate on healthcare, don't know specifically what their increasingly expensive services cost. Maybe my expectations are unrealistic, but that seems like some epic dereliction. As you say, it's hard to imagine many other institutions or businesses getting a pass for that sort of practice.
Alison_Diana
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Alison_Diana,
User Rank: Author
7/2/2014 | 4:30:45 PM
Find the Price Tag
A recent USA Today story discussed how little hospitals often know about how much their procedures or products actually cost, and these weird structures they use to come up with pricing. This certainly underscores the need for some healthcare providers to use better business tools and integrated data to streamline what they're spending, where they're spending it, and other standard business practices. It's unimaginable that any other successful business wouldn't know how much its supplies cost so it could determine a profit margin.


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