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- Sep 15, 2010
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One hospital charges $8,000 ? another, $38,000
The Free Market system for Healthcare is all screwed up. Since they never tell how much a procedure is or will be and most don't shop around because when you're sick you don't exactly have the time to do so..that creates this situation
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For the first time, the federal government will release the prices that hospitals charge for the 100 most common inpatient procedures. Until now, these charges have been closely held by facilities that see a competitive advantage in shielding their fees from competitors. What the numbers reveal is a health-care system with tremendous, seemingly random variation in the costs of services.
In the District, George Washington Universitys average bill for a patient on a ventilator was $115,000, while Providence Hospitals average charge for the same service was just under $53,000. For a lower joint replacement, George Washington University charged almost $69,000 compared with Sibley Memorial Hospitals average of just under $30,000.
Virginias highest average rate for a lower limb replacement was at CJW Medical Center in Richmond, more than $117,000, compared with Winchester Medical Center charging $25,600 per procedure. CJW charged more than $38,000 for esophagitis and gastrointestinal conditions, while Carilion Tazewell Community Hospital averaged $8,100 in those cases.
Maryland has a unique system for hospital rate charges, so differences were smaller, and its average rate was lower than that of any other state in the most common procedures reviewed by The Washington Post. The highest average charge for a lower joint replacement was $36,000 by University of Maryland Medical Center in Baltimore, much lower than the highest rates in other states.
The Free Market system for Healthcare is all screwed up. Since they never tell how much a procedure is or will be and most don't shop around because when you're sick you don't exactly have the time to do so..that creates this situation
Experts attribute the disparities to a health system that can set prices with impunity because consumers rarely see them and rarely shop for discounts. Although the government has collected this information for years, it was housed in a bulky database that researchers had to pay to access.
The hospital charges being released Wednesday all from 2011 show the hospitals average list prices. Adding another layer of opacity, Medicare and private insurance companies typically negotiate lower charges with hospitals. But the data shed light on fees that the uninsured could pay.
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Its true that Medicare and a lot of private insurers never pay the full charge, said Renee Hsia, an assistant professor at the University of California at San Francisco Medical School whose research focuses on price variation. But you have a lot of private insurance companies where the consumer pays a portion of the charge. For uninsured patients, they face the full bill. In that sense, the price matters.