hospital impact

By Jared Johnson

The latest public hospital data Web site has made it to the Lone Star State, but the jury's still out about just how helpful it will be to consumers. Texas Price Point, sister to Price Point sites in at least 8 other states (IA, NH, NM, OR, UT, VA, WA, WI), is due to go live at the end of February. Most, if not all, are products of those states' hospital associations in an effort to "allow users to view and compare pricing information on common inpatient services."

I was able to take a test drive this week and it felt like I was handed the keys to the car and told to drive wherever my heart pleases. Some call this freedom or empowerment; others might say it's plain intimidating. Price Point includes median hospital charges for over 60 procedures, and they give you turn-by-turn navigation to find the ones you want.

Reaction has been mixed in other states (see Jeff Sturgeon in The Roanoke Times and Heidi Toth in The Provo Daily Herald). The following editorial from the Clinton (IA) Herald on February 1, 2007 is the best assessment I've seen:

In a free market society, it may seem ideal to let patients treat hospitals like a retail store, shopping around for the best price in order to save a buck here and there. However, medical care is much more complicated than that…

…It ought to be clear by now that this isn't the same as knowing how much a gallon of milk costs at Hy-Vee, Jewel and Fareway.

But still, Web site's [sic] like PricePoint are an important step in helping the consumer make educated choices. Health care is something everyone needs and one of the biggest headaches for the state and federal governments. The insurance business is a behemoth that sometimes appears too big for its own good, but it's the only real system we've got and can't be abandoned until a better solution is found.

The topic is confusing, to be sure, but having these conversations and exposing the many factors that boggle the mind are the best way to work toward getting everything cleared up for future generations.

I am rooting for Texas Price Point, and I hope it meets its objectives. My main question is how Joe Consumer will use this information. I can see him deluging the billing office with questions about why his charge is different than what's listed online. It opens more than a can of worms — more like a 50-gallon drum.

Still, the father of Price Point — Wisconsin Hospital Association's Stephen Brenton — pointed out to the House Ways and Means Subcommittee last summer that hospitals are doing their part to make prices available to consumers. That's one reason Price Point doesn't have to be all-inclusive. It is an effectual step toward transparency, not the ultimate answer.

Count me on the bandwagon.