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Original Investigation | Health Care Reform

Availability of Consumer Prices From US Hospitals for a Common Surgical Procedure

Jaime A. Rosenthal; Xin Lu, MS; Peter Cram, MD, MBA
JAMA Intern Med. 2013;173(6):427-432. doi:10.1001/jamainternmed.2013.460.
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Importance  Many proposals for health care reform incentivize patients to play a more active role in selecting health care providers on the basis of quality and price. While data on quality are increasingly available, availability of pricing data is uncertain.

Objective  To examine whether we could obtain pricing data for a common elective surgical procedure, total hip arthroplasty (THA).

Design  We randomly selected 2 hospitals from each state (plus Washington, DC) that perform THA, as well as the 20 top-ranked orthopedic hospitals according to US News and World Report rankings. We contacted each hospital by telephone between May 2011 and July 2012. Using a standardized script, we requested from each hospital the lowest complete “bundled price” (hospital plus physician fees) for an elective THA that was required by one of the author's 62-year-old grandmother. In our scenario, the grandmother did not have insurance but had the means to pay out of pocket. We explained that we were seeking the lowest complete price for the procedure. When we encountered hospitals that could provide the hospital fee only, we contacted a random hospital affiliated orthopedic surgery practice to obtain the physician fee. Each hospital was contacted up to 5 times in efforts to obtain pricing information.

Setting/Participants  All top-ranked and a sample of non–top-ranked US hospitals performing THA.

Main Outcome Measures  Percentage of hospitals able to provide a complete price estimate for THA (physician and hospital fee) for top-ranked and non–top-ranked hospitals and range of prices quoted by each group.

Results  Nine top-ranked hospitals (45%) and 10 non–top-ranked hospitals (10%) were able to provide a complete bundled price (P < .001). We were able to obtain a complete price estimate from an additional 3 top-ranked hospitals (15%) and 54 non–top-ranked hospitals (53%) (P = .002) by contacting the hospital and physician separately. The range of complete prices was wide for both top-ranked ($12 500-$105 000) and non–top-ranked hospitals ($11 100-$125 798).

Conclusions and Relevance  We found it difficult to obtain price information for THA and observed wide variation in the prices that were quoted. Many health care providers cannot provide reasonable price estimates. Patients seeking elective THA may find considerable price savings through comparison shopping.

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Figure. Distribution of pricing estimates obtained for total hip arthroplasty. A, Top-ranked hospitals; B, non–top-ranked hospitals.

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Posted on March 28, 2013
Marco D. Huesch
USC Sol Price School of Public Policy; Duke University School of Medicine and Duke Fuqua School of Business
Conflict of Interest: I received payments for consulting services to the IOM's Committee on Geographic Variation. No other relevant financial interests or potential conflicts

I agree with the authors that price transparency is important and wanted to point out one good source of independent price estimates.

I just used FAIR Health's consumer cost look-up website (fairhealthconsumer.org) to see what the professional fees for a total hip arthroplasty might end up costing an uninsured patient. The information from this independent, non-profit organization resulting from NY AG Andrew Cuomo's settlement with commercial insurers is not binding and does not include hospital facility charges. But I found that the 80th centile of professional medical fee undiscounted pricing is $6,840 near where I am in downtown Los Angeles (zipcodes 900XX), $11,999 nearer to Beverly Hills (902XX), and $9,640 around Stanford (943XX). That fits well with the authors' data in Table 3. Consumers are limited to 20 searches a month, but this may be a good, initial way to explore options at a coarse level for uninsured patients.

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