NATIONAL HOSPITAL PRICE TRANSPARENCY STUDY

Commissioned by Employers’ Forum of Indiana
Conducted by the Rand Corporation
Website: www.employerptp.org

Faced with rising and unsustainable health care costs, Employers’ Forum of Indiana set out to help employers contract for hospital provider services that offer the best value (best quality at best cost). They commissioned a first-of-its-kind, purchaser-led initiative using claims data from 2015 to 2017 to publicly compare hospital prices relative to a Medicare.

Kentucky Hospital Pricing Workgroup

If you are an employer, healthcare purchaser, or health plan interested in joining a working group to discuss this study, its findings, and next steps, please contact the KHC.

Randa Deaton | rdeaton@ford.com

Stephanie Clouser | sclouser@khcollaborative.org

KHC June 4 Community Forum

The KHC Forum on June 4, 2019 was focused on the National Hospital Price Transparency Study Results. The slides from the event are below:

The Rand 2.0 Study Gains National Attention

How do Kentucky hospitals compare to the rest of the nation?

National Employer Overall Hospital Pricing Relative to Medicare

204% Inpatient | 293% Outpatient

National Key Takeaways

  1. Employers pay significantly more than Medicare for the same services, sometimes reaching 500% more of what Medicare pay.
  2. There is wide variation in pricing between and within states with little correlation to quality.
  3. Pricing trends are going up.
  4. Employers should consider new contracting strategies.
  5. More employers are needed to participate in the next iteration of the study, planned for January 2020.

Kentucky Employer Overall Hospital Pricing Relative to Medicare

145% Inpatient | 245% Outpatient

Kentucky Key Takeaways

  1. Kentucky employers pay more than Medicare pays for the same services, but well below the national average from other states.
  2. Few Kentucky hospitals have high quality, with only 16% of hospitals with above average quality, compared to 45% of hospitals in the study.
  3. There is a wide variation of pricing in Kentucky, ranging from 166% to 543% more than Medicare, with pricing trending down.
  4. More employers are needed to participate in the next iteration of the study, planned for January 2020.

The Study’s Timeline

  • Study 1.0

    September 2017

    Indiana Hospital Price Report was published with results showing Indiana employers were paying 272% of what Medicare pays.

  • Study 2.0

    May 2019

    National Hospital Price Transparency Report 2.0 expanded to nearly 1,600 hospitals in 25 states, with results showing employers nationally paid 241% of what Medicare paid, with wide variation in prices and quality among states.

  • Study 3.0

    January 2020

    Employers and health plans are enrolling now for a more extensive study. The data security rigor of the study meets highest privacy standards. Data submission is due September 2019. Visit employerptp.org/#enroll, join a July 9 information session or schedule a meeting with the KHC.