Regulation, Policy, and Economic Efficiency
One of the assumptions of value-based care is that if consumers are aware of price, then they can make better decisions about the healthcare services they receive. In an effort to encourage this efficiency in healthcare, government regulation and policy has been designed to promote transparency of quality and cost information. For this Discussion, examine the following scenario and consider how regulation and policy on hospital cost transparency might improve economic efficiency.
Scenario: On behalf of consumers, employers and local purchasers in your market are committed to slowing healthcare costs by improving visibility on hospital prices. A recent media story revealed that prices in your local market were the highest in the state. You are a member of a private sector consulting service that has been hired to help a hospital address transparency issues. The hospital would like to be more transparent in their cost and fee relationships with providers.
To prepare for this Discussion, review the provided scenario. What are the advantages of transparency for both the hospital and the consumer? How might hospital cost transparency improve economic efficiency? Consider current (last 5 years) regulation and policy to compare hospitals based on their costs. Locate and review literature to support your recommendations.
Post an analysis of the advantages of transparency for both the hospital and the consumer. Include how hospital cost transparency might improve economic efficiency. Then, recommend regulation and policy to compare hospitals based on their costs. Defend your recommendations.
General Guidance on Discussion Posts: Your original post, due by Day 3, will typically be 3-4 paragraphs in length as a general expectation/estimate.