Hospital Transparency

Hospital Price Transparency Initiative


As large employers enroll roughly half of the U.S. population into sponsored health plans, they are in a strong position to demand increased value from the healthcare system. However, they often lack the right cost information to show what they are really paying for health care services. A 2013-2016 study of about a dozen self-funded large employers revealed prices for hospitals services in the state of Indiana that were far above what was considered normal.

This landmark study sparked a 2.0 version with results launch in the spring of 2019. This study expanded the number of hospitals to over 1,600 in 25 states and included analysis of claims data from dozens of self-funded employers, two state-based all payer claims databases (APCDs), and one or more health plans.

A 3.0 study will be conducted in the fall of 2019 and will include additional states and hospitals. The results are anticipated for release in early 2020.

Our Path Forward

As RAND is expands the scope of its analysis, the more valuable the results of this three-year study will be for employers as it will help inform their local strategy toward paying for value.

Our Collective Value Agenda:

Uniting and raising our voices together

  • Support employers to become more informed healthcare decision-makers
  • Develop an aligned strategy that is capable of materially increasing value from the healthcare system
  • Provide employer-specific private reports
  • Learn strategies that will gradually rein in unreasonably high prices, especially for hospital outpatient services
  • Work with other employers and business coalitions across the country to advocate for changes in how contracts are developed and negotiated
  • Over the longer term, employers can support efforts to promote competition in health care markets by opposing consolidation among existing providers and promoting entry of new, lower-priced providers
“The Aim of the Hospital Transparency Initiative is to improve the value payers and patients receive for their health care expenditures.”

Gloria Sachdev, Pharm.D., President and CEO, Employers’ Forum of Indiana and Hospital Transparency Initiative Advisor