NEFF HEALTHCARE INSIGHTS
The Impact Of Open Pricing On Healthcare? A Revolution.
Open pricing in healthcare? It would be the best of times. It would be the worst of times. And, it’s going to take a long, long time.
If you’re in the healthcare business and you’re wondering how this will impact your revenues, profit margins and your long-term planning, then here is your answer:
It will be revolutionary. But it will be a slow, slow revolution. The disruption will be momentous. But, it will be long delayed, and strung out for many years, if not decades.
Why? Because we live in a society that has been generationally conditioned not only to “not know” the pricing of healthcare but to “not want to know” the pricing of healthcare.
The reason is few consumers are directly paying for their own healthcare. And, if you’re not paying for it, do you really care what the price is anyway?
It’s simply human nature.
What if you were given thirty minutes to shop in a department store? And what if, you were told you could get any and all of the items you wanted, and that you wouldn’t have to pay for anything?
Would you really care what the prices are? Maybe out of curiosity, but certainly not out of necessity.
This is exactly what has been the “consumer perception” when it comes to healthcare. Somebody else is paying. Either it’s their employer, the government or whoever gets stuck with the bill when an uncovered individual walks into an Emergency Room.
The reason why there is revolution in the air is this illusion that “someone else is paying” is finally being revealed for the deception that it is.
Most people do pay. Quite a bit. According to some statistics, families are contributing an average of $20,000 a year to their healthcare expenses. And with the unfettered rise of costs in the system, and with the rapid increases to co-pay, the pain is getting more acute and is on the way to becoming terminal.
Seniors on a fixed income are feeling the pain the worst. The good news is they are living longer, but the costs to make this possible are driving many of them into retirement bankruptcy.
Thus, Viva The Revolution.
The people are going to demand reform, and it will be coming. There will be no greater reform than full transparency when it comes to healthcare costs.
People will see the full cost of their healthcare options. They will make business decisions for themselves and their family. And it will change everything.
But, this revolution in healthcare will be slowed tremendously by both complacency and complexity.
Few people really WANT change. Change is difficult. It will take time to educate and gather people into the massive consensus required to move these mountains of “this is how we’ve always done it”.
And, change will be extraordinarily complex. The reason is there are very few people, including those in accounting departments of hospitals, who can actually tell you what healthcare really costs.
This is by design. It’s a strategy that has built this into one of America’s most profitable industries.
So, if you’re worried they will be forcing you to place sticker prices on healthcare anytime soon, the good news is you will have plenty of time to strategize, prepare and remain profitable.
All, while providing the excellent healthcare your patients deserve.
But, you have heard it here. The pain is real. The Revolution is coming.
Stephen is a healthcare executive leader with over 35 years of progressive experience, including 25 years in CEO and CFO roles within large community hospital and senior care health systems.
Through his consultancy, Neff Healthcare, he serves entrepreneurs, investors and leaders facing mission-critical strategic and operational challenges in the healthcare industry. He would enjoy strengthening your vision and goals by providing his proven expertise of the health care market, strategic planning and execution proficiency, team building skills, communications, and philanthropy.
You can reach Stephen at firstname.lastname@example.org.