3 Things to Consider when Posting the Hospital Chargemaster List Online

3 Things to consider when Posting the Hospital Chargemaster List Online

Recently, there’s been a lot of noise around CMS’s updated price transparency mandates that have left many pa professionals scratching their heads as to what is true and what is just a rumor. And with this mandate becoming effective by January 1, 2019, providers nationwide cannot afford to approach this task lackadaisically.

According to the Center for Medicare and Medicaid Services (CMS), hospitals will be required to post a complete list of their standard charges (CDM) online via a machine-readable format, but many people still have questions concerning the specific details of this mandate.

The issue here is that many providers have questions focused solely on the type of information they will need to post rather than also considering how to position/frame this message for the consumer. Providers need to be very careful about how they present these charges so the consumer is aware that the CDM price isn’t equal to their out-of-pocket cost.

So how can an organization post their CDM list without scaring away consumers?

CMS’s hope is that by requiring hospitals to post their standard charges online, patients will have more access to pricing information and they will know their financial responsibility before the procedure so there are no surprise charges.

“If you’re buying a car, or pretty much anything else, you’re able to do some research. You’re able to know what the quality is. You’re able to make comparisons. Why shouldn’t we be able to do that in healthcare? Every healthcare consumer wants that,” says Seems Verma, CMS Administrator.

However, this is much easier said than done.

Here are 3 things to consider when posting your chargemaster list online:

· How will the customer perceive the charges?

· How will the competition react to the publishing of these standard charges?

· Where could this industry trend be headed down the road?

How Will the Customer Perceive the Charges?

For most providers, the biggest concern they have with posting their standard charges online is trying to control how patients perceive the charges. In other words, providers are unsure of the best way to inform online consumers that the CDM list isn’t necessarily what their actual out-of-pocket will be.

To illustrate this concern, here are two different scenarios of how this dilemma could play out for your hospital:

· Scenario 1: Patient goes to a hospital’s website in search of a full price estimate → Patient sees the CDM list posted and gets scared off thinking that is their full estimate → Patient goes to a competing provider instead.

· Scenario 2: Patient goes to a hospital’s website in search of a full price estimate → Patient sees the CDM price listed and sees that there is a simple explanation of what CDM charges mean → Patient now realizes that the CDM price isn’t what their out-of-pocket will be → Patient requests the full estimate. Which scenario would your organization prefer?

This is why it is absolutely crucial for hospitals to understand how their patients think and developing a controlled strategic message that aligns with their expectations.

The key is to develop a strategic message before you post the charges online so you know how to frame it properly without scaring away your patients. Think about what you want to say, then think about how to say it. Keep in mind that although the CDM language may seem second-nature to healthcare professionals, it can be confusing for the average patient so it’s important to put the message in laments terms to prevent any misunderstandings.

For example, if you were a heart surgeon describing your job to a stranger, you would probably use laments terms that the other person is already familiar with from their previous visits to their doctor. If you were to use technical terms, on the other hand, the other person would not understand you and their attention might stray off.

The same principle applies to explaining chargemaster to your patients.

How Will the Competition React to the Publishing of these Standard Charges?

When developing a strategy for posting your standard charges online, it’s also very important to consider how your competition may respond to the mandate.

Keep in mind that since all hospitals are going to have to post these standard charges by January 1, 2019, it’s important to strategize a game plan for using the ruling to gain leverage on the competition. What it comes down to is timing and choosing the right message; whether or not your organization is prepared to meet the ruling by January 1, 2019 and how your hospital plans to control how the message is delivered and where it’s positioned on your website.

Another way of using this mandate to get ahead of your competition is to go the extra mile in addition to the CDM list. Although this mandate specifically calls for hospitals to post their CDM charges, what patients really want to see is a full estimate in a few simple steps.

In fact, according to a Black Book Survey, 90% of patients do not feel obligated to stay with a healthcare provider who doesn’t deliver an overall satisfactory digital experience. In addition, 88% of respondents under age 40 state they will choose their next medical provider based on a strong online presence. By offering this service to your patients, hospitals can leverage this feature to not only pull in more patients from other hospitals but also retain the patients they already have.

Where Could This Industry Trend Be Headed Down the Road?

In addition to the final ruling, CMS has also released plans for a Sought Source Notice used to find vendors for a web-based platform that can support healthcare pricing comparison and bidding activity. Although this item is currently in its infancy stage, this could be a sign that CMS is planning to move towards a retail-like model where patients can shop for healthcare services the same way consumers shop for automobiles on Cars.com (i.e. the consumer searches for the service they need and then find the closest provider for the best price).

What does this mean for the provider and the consumer?

Well, for the provider, it means they could lose control of the pricing message as CMS might try to use an outside vendor to provide CDM list prices to their patients.

For the consumer, it means that they will be using a CMS selected vendor as their main source of getting pricing information, making it that much more important for hospitals to control their pricing message on their own website.

Conclusion

At the end of the day, hospitals will have to post their standard chargemaster no matter what, but that is not the big takeaway. In order to stay competitive in their market, healthcare providers will need a strategy beyond just publishing their standard charges. Without a strategy, hospitals will lose the ability to control the pricing message and could lose patients as a result.