In today’s era of intense public scrutiny on medical costs, what’s your pricing strategy? Does it pass the test of fairness and accuracy, without sacrificing revenue objectives?
Over the decades, many hospitals were reimbursed or paid less than cost by federal and managed-care payers. These shortfalls were often subsidized through selective-price adjustments or cross-subsidization. After years of deploying such techniques, chargemaster pricing has become indefensible and hospital CFOs find themselves facing renewed, intense public price scrutiny — and with chargemasters that are difficult to explain to outside observers.
What’s a provider to do? How can you develop and pursue an appropriate and defensible pricing strategy, in your market, that achieves net revenue objectives?