On January 1, 2019, the Centers for Medicare and Medicaid Services (CMS) began requiring hospitals and inpatient facilities to publish the cost of their services online in a "machine-readable format." Private practitioners from many fields of many fields of medicine, including gynecology, are wondering how this regulation will affect their practices and their patients.
The final rule on CMS price transparency in the Hospital Inpatient Prospective Payment System does not apply to private practices. However, you may benefit from publishing your prices in a few surprising ways.
Price Shopping Under CMS Price Transparency Rules
CMS has required hospitals to make their prices available for several years, but the new rule makes it easier for potential patients to price shop for non-urgent services.
In 2016, Physicians Practice listed the top three reasons that healthcare providers were afraid to post their prices online: fear that patients would shop for the lowest price, fear that competitors could see their rates and concern that patients would not understand how online pricing translates into an actual bill. Many patients, meanwhile, are juggling high deductibles, health savings accounts and consumer-driven health plans, and are more concerned than ever with how much each doctor's visit will cost.
How Transparency Affects Private Practices
Your patients may be surprised to learn that the cost of the same procedure can vary widely if it's performed at a hospital or at a private practice. Part of the reason for this is that CMS reimburses hospital doctors and services at a higher rate than private practitioners. Modern Healthcare provides an eye-opening example: A colonoscopy performed in a hospital would be reimbursed by Medicare by 164 percent more than if it had been performed in a private practice. Additionally, hospital operation costs mean that stand-alone practices may be able to charge far less for the same services.
Publishing your prices online could attract new patients. One physician writing in The Annals of Plastic Surgery found that using an online pricing tool allowed him to draw new prospective customers, capture their contact information and ultimately provide in-office consultations to nearly 18 percent of respondents.
Patient Satisfaction
Patients faced with rising out-of-pocket costs now have the tools to compare prices at their fingertips. Even happy patients can become dissatisfied with their entire experience if they receive an unexpected bill; price transparency is a proactive way to avoid receiving a bad online review prompted by an unpleasant billing experience, and can help foster a good doctor-patient relationship.
Even though they're not subject to CMS price transparency rules, private gynecology practices should consider publishing their prices online. A member of your office staff can easily peruse the websites of other local practitioners to see whether they have embraced this trend. If they haven't, providing online pricing might offer a competitive edge. If they have, consider it a good opportunity to see how your practice's pricing compares.
If you decide to move to online pricing, makes sure your website highlights the personal touches patients enjoy in your office that they might not receive from larger facilities. Promote your in-house imaging, accessible records, prime location or even free parking. Your website should also explain that many factors determine a patient's final bill, including insurance, deductibles and third-party charges such as pathology. Encourage prospective patients to call the office with pricing questions.
Private practitioners have an opportunity to attract new patients by using price transparency as a recruiting tool. If patients are not already asking about your prices, they will be soon. Be prepared to show them value that comes with the cost.
