Healthinsurancecompanies overpay for some hospital radiology services rsna
Health insurance companies may be overpaying for common radiology services, according to a study published in"Many commercial plans are leaving money on the table when negotiating price with hospitals, especially for expensive CT and MRI scans," said study co-author Ge Bai, Ph.D., C.P.A., professor of accounting at the Johns Hopkins Carey Business School in Baltimore, Maryland."High prices paid by commercial plans eventually come back to bite U.S.
CT and MRI services had wider price gaps both within a hospital and within a hospital-insurance-company pair as well as higher prices relative to Medicare when compared to other radiology services. The widest price gaps were found in brain CT, where 25% of hospital-insurance-company pairs had their maximum negotiated price more than 2.4 times their minimum negotiated price.
"Price transparency took the blindfold off the eyes of commercial payers, forcing them to recognize the fact that they are often paying too much," Dr. Bai said."Equipped with pricing information, radiologists can change the landscape of care delivery to benefit patients and payers." The study also found that higher prices for higher cost services imply higher hospital profitability. This can potentially motivate hospitals to direct investments away from low-cost to high-cost imaging without regard to incremental clinical value. As a result, such moves may lead to inefficient spending for both patients and payers.
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