Board Academy Phase 2

Hospital Operations

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Through the Looking Glass: Understanding Hospital Pricing

With consumers being required to shoulder more responsibility for their healthcare costs, there is growing pressure on providers to simplify prices and billing statements to make them more easily understood by the general public. This brief explores how hospitals set charges, how payers reimburse hospitals, the link between charge masters and reimbursement, what has been happening nationally and in Ohio, unintended consequences of price transparency and competition, and how policymakers can encourage transparency while protecting community hospitals.

(The Center for Health Affairs, June 2007)


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