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Reconstructing Hospital Pricing Systems: Price Quote Checklist and Development Guidelines

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What to include:

Physician orders

  • Diagnosis and CPT/HCPCS codes and narrative
  • Authorization/Medical Necessity established
  • Standardized form (patient can use this as a basis to research the healthcare service on the website, etc.)

All charges associated with service

  • Ancillary
  • Charges/prices/liability related to diagnosis/procedure
  • Service packaging

Physician or ancillary services included or excluded (include communication that these services will be billed separately)

  • Recommend including all charges in the estimate (physician and provider)
  • Clarity around what charges are included in the price quote (and what charges ARE NOT included in the quote)
  • Provide an estimate as comprehensive as possible with clarity added when necessary (remove the element of surprise)
  • Communication to the patient should be as simplified as possible

Estimate of out-of-pocket expenses

  • Discounts – provider policy

 Payment options

  • How to apply for provider financial assistance (policy-website)
  • 90 days same as cash
  • Bank Loans
  • Discount opportunities
  • HSA/HRA’s
  • Other payment options 

Wording that “this is an estimate”

  • Estimate is not enough, define what estimate means (could be higher or lower)
  • “Clarity” “Disclaimer” (should be written in prudent layperson language)

 Wording that Price quote is good for certain period of time

  • Time period identified in writing

Quote should be no more than one page

What to do:

  • Providers should determine and commit to level of quote guarantee (for example, any complications would be extra or would be included or set rate per day, etc.

  • Quote must be written in PATIENT FRIENDLY BILLING© language and available in multiple languages.

  • Providers should develop a script for the delivery of the quote.

  • Look at and include historical data for price fluctuations.

  • Eliminate high and low variables.

  • Realign the Revenue Cycle (model policy and procedures developed in conjunction with payers based on provider needs, and customize guidelines).

  • Financially counsel the patient regarding other payment options.

  • Include clinical area/physicians in discussions about pricing transparency.

  • Coding should be included in the scope of the revenue cycle (accuracy of coding and documentation).

  • Focus on what the patient actually owes.

  • Develop procedures on how we manage that interaction at the point of service or sooner.

  • Focus on a patient centric process.

  • Publish guiding principles on discount/financial policies on the website.

  • Develop and communicate/share/make available, a comprehensive transparent financial policy – very objective quoting process – standardized.

  • Develop a policy that addresses how the information is displayed/processed in the facility (hard copy/in person/phone/website).

  • Ensure that staff who engage in this discussion have the skill sets needed to delivery the quote.

  • Develop and implement process changes by phases:
    • Phase I
    • Price
    • Phase II
    • Quality of care/clinical outcomes
    • Phase III
    • Quality of customer service (overall quality of the experience)
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