Free Market at work – Oklahoma hospital starts price war by posting surgical prices online
An Oklahoma City surgery center is offering a new kind of price transparency, posting guaranteed all-inclusive surgery prices online. The move is revolutionizing medical billing in Oklahoma and around the world.
“What we’ve discovered is health care really doesn’t cost that much,” Dr. Smith said. “What people are being charged for is another matter altogether.”
Surgery Center of Oklahoma started posting their prices online about four years ago. The prices are all-inclusive quotes and they are guaranteed.
“When we first started we thought we were about half the price of the hospitals,” Dr. Lantier remembers. “Then we found out we’re less than half price. Then we find out we’re a sixth to an eighth of what their prices are. I can’t believe the average person can afford health care at these prices.”
Their goal was to start a price war and they did. Their first out-of-town patients came from Canada; soon everyday Americans caught on.
Matthew Gang, 22, tore his patella tendon, dislocating his knee-cap playing basketball earlier this year. Gang is from California and he is uninsured.
Surgery in his home-state was going to be about $30,000. The posted price at Surgery Center of Oklahoma was $5,700, one-fifth the price.
Other price comparisons:
Mercy Hospital charged $16, 244 for a breast biopsy; the procedure will cost $3,500 at Surgery Center of Oklahoma.
OU Medical Center billed $20,456 for the open repair of a fracture; the procedure will cost $4,855 at Surgery Center of Oklahoma.
OU Medical Center billed $21,556 for a gall bladder removal surgery; the procedure will cost $5,865 at Surgery Center of Oklahoma.
OU Medical Center billed $23,934 for an ankle arthroscopy; the procedure will cost $3,740 at Surgery Center of Oklahoma.
Integris Baptist billed $37,174 for a hysterectomy; the surgery costs $8,000 at Surgery Center of Oklahoma.
Read the rest here: http://kfor.com/2013/07/08/okc-hospital-posting-surgery-prices-online/