Strategic Pricing Analysis

Strategic Pricing Analysis

AN OVERVIEW OF A STRATEGIC PRICING ANALYSIS

Rapidly rising costs in Healthcare are causing the “market” to become more consumer driven. Patients are comparing prices and are requesting quotes in advance. Regulations requiring publicly posted pricing are being implemented, and all of these issues are encouraging price comparisons.

Hospitals must have the tools to become more sophisticated in their approach to establishing prices. They need to optimize revenue and maintain compliance while staying within the constraints of these “new” consumer-driven healthcare initiatives, and third party contractual limitations.

PREPARING YOUR FACILITY FOR PRICE TRANSPARENCY

Hospital prices are under increased scrutiny by Federal agencies, patients, and the public in general, at a time when hospital operating margins are weak. Hospitals in some states are required to post prices for some, or all, procedures under new consumer-driven “transparency” regulations.

KEY OBJECTIVES OF A STRATEGIC PRICING ANALYSIS

Monitor charge data at the CPT/HCPCS code level of competitor or peer group hospitals.
Negotiate managed care contracts from a position of strength and knowledge through an understanding of the hospital’s price competitiveness as compared to other area hospitals.
Establish charges for new procedures and programs.
Determine how a hospital’s current charge mark-up factor compares to the mark-up factor of its competitors or selected peer group.
Identify CPT/HCPCS codes that the selected Peer Group Hospitals have reported that your facility has not through PRC's Code Omission Table.
Have the charge data from the selected Peer Group Hospitals brought into a report containing your charge master for easy comparisons.

Request a Sample of the data provided during a Strategic Pricing Analysis by emailing us at: prcprc@aol.com