HOUSTON – In 2019, the Department of Health and Human Services began requiring hospitals to list their prices online.
The Baker Institute at Rice University found that Texas hospitals have been slow to comply with federal rules, particularly hospitals in Houston.
Health economist at Rice University and Baylor College of Medicine, Vivian Ho, compared Baylor St. Lukes, Memorial Hermann and Houston Methodist and the negotiated deals they have between Aetna, Blue Cross, United Healthcare and Humana.
The most shocking revelation from her research is how the cost of a procedure can vary greatly across hospitals. For example:
These are the prices for a spinal fusion:
- Houston Methodist - $98,640
- Memorial Hermann - $57,629.99
- Baylor St. Luke’s - $52,788.63
Here’s what open heart surgery costs:
- Methodist - $129,866
- Memorial Hermann - $60,066.12
- St. Luke’s - $54,766.58
Ho said if the goal is to ultimately drive down prices, employers need to negotiate benefits based on who can provide quality care at a low cost.
“You need the employer to do it because they can drive a large number of customers towards the best, high-quality, low-cost care. Individual consumers aren’t going to do that on their own, it’s not going to be the same effect,” Ho said.
Here is the link to price differences Rice economists found: CHB-Hospital-Price-Comparisons-101022.xlsx | Powered by Box
Ho said there are many people digesting this information and she expects in the next few years consumers will be able to access this information easier. Right now, even when the prices are listed online, it’s not always easy to comprehend.
“The federal government is starting to hear complaints about this and they’re working towards a standardized format for all hospitals, which will be a big improvement,” Ho said.
If a hospital is not in compliance with price transparency regulation, you can report them to the Department of Health and Human Services here: CMS PT Complaint Intake Submission Form (qualtrics.com)