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Stay Alert About Trends In Health Care Pricing

It's stating the obvious to say that pricing by health care organizations is a critical issue in their P&L.  So, what's likely to happen to health care pricing now that the new reforms are starting to take hold?  Health care industry consultant and authority MaryKate Scott, argues that it will be extremely difficult to project pricing trends because existing prices are "artificial."  In a brief video, she says that hospitals have been charging overly-high rates for many procedures so that they could negotiate down with the insurance companies.  The result, she says, is a "convoluted pricing system that nobody really understands."

As a result, there will emerge a new transparency in pricing that is based on an analysis of real costs and a true price.  This is likely to be a major challenge for all players in the health care system, and may create a new and potent force of volatility.

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