Revealing medical procedure prices in Oklahoma

By Jim Stafford
Published: August 31, 2008

Call it sticker shock. It's that wide-eyed look of horrified surprise that new car buyers often display when they walk across a car lot and peer at the retail price listed on the window stickers of new vehicles.

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Now Oklahoma health care consumers can experience sticker shock, as well.

The Oklahoma Hospital Association launched a Web site launched late last year that lists the full retail prices for almost any procedure offered at a member hospital in the state.

Launched in December 2007, the site is found at www.OKHospitalPricing.org.

"This was aimed at trying to be more transparent and more accountable to the general public,” said Craig Jones, president of the Hospital Association.

"We wanted to do this in a meaningful way to the public but in a fair way to the hospitals,” Jones said. "There are some educationally oriented kinds of graphs and things on there.

"We want (consumers) to know to look at the overall mix of business that the hospital is doing; look at the amount of charity care, because all of those factors play into what they have to set their prices at.”

Jones emphasized that the prices listed for various hospital procedures are retail prices, and in the health care business, almost no one pays retail.

"What you are charged and what the hospital intends to collect are two totally different things,” he said. "There is a whole lot more detail than what is the sticker price, if you will.”

Negotiating discounts
Insurance companies negotiate deep discounts from the "sticker price,” and patients then pay a percentage of what is not covered by the insurance policy. Medicare and Medicaid pay at certain rates that are far below the retail prices.

And all hospitals discount that price for patients who have no insurance coverage, as well.

For instance, the "sticker price” median charge listed on the hospital pricing Web site for a heart catheterization at eight Oklahoma City area hospitals ranged from a low of $14,664 at Deaconess Hospital to a high of $29,719 at Midwest Regional Medical Center.

But that is just a starting point.

"I think the hospitals are very aware that the list price is not relevant to the majority of patients,” said Rick Snyder, vice president of finance and information services for the Hospital Association. "It would be nice to show out of pocket costs, yet this is the information that we had available and this is the starting point.”

Oklahoma doesn't require that hospitals make their information public, so the hospital pricing site is an effort to get out in front of the issue, Jones said.

The next step is making "quality” information public.

"It's a stepping stone toward where we hope to see this evolve,” Jones said.


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In response to Bill:
1. Our medical system is one of the most highly regulated industries in the world. There are multiple federal and state agencies that oversee every facet of the medical system.
2. There is no guarantee of collection. Doctors on average expect to collect 50-75% of what they bill.
3. There are several websites (healthgrades.com is one) that rate healthcare providers. The state also has a website that lists any disciplinary actions against providers. There is not any great variance in the real prices that are eventually charged to patients since most providers are beholden to the insurance companies contract rates.
4. Doctors get sued left and right. Just watch TV for 10min, open the newspaper, or phonebook and you will no doubt come across an advertisement for a lawyer offering to sue a doctor for you.
The take home pay of physicians makes up only about 10% of the healthcare spending in the US. Insurance companies, pharmaceutical companies, and medical device companies account for the lion's share. If there is a "racket" it is firmly concentrated in those specific areas of healthcare. It is no surprise that those industries heavily lobby members of congress and have a big hand in constructing the payor system for healthcare. I agree that the cost of healthcare is inflated, and it is because of these middlemen in the system. That is where reform needs to be focused.
bob, mwc - Sep 1, 2008 11:02 AM
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There is no question that the cost of medical care in this country is a ripoff. There is no other industry in the world that is: 1. completely unregulated 2. is guaranteed to collect, via insurance or strongarm tactics, 100% of its bills 3. has no way for consumers to determine if it is getting quality or if the pricing is fair 4. is virtually impossible to sue if the quality is poor due to the doctors 'code of silence'. Medical care is a RACKET.
Bill, tulsa - Aug 31, 2008 7:36 AM
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