Hospital Transparency

Hospital Price Transparency Initiative

Overview

As large employers enroll roughly half of the United States 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 healthcare services. A landmark study back in 2018 sponsored by RWJF and conducted by the RAND Corporation revealed prices for hospitals services in the state of Indiana were far above what was considered normal.

The study sparked an annual series of studies that has grown to include claims data from dozens of self-funded employers, all-payer claims databases (APCDs) and several health plans. In September 2020, RAND 3.0, was launched and includes 3,112 hospitals and 49 states – accounting for $33.8 billion in spending by private payers.

Many coalitions across the country are doing work in their own regions to bring the findings back to their members and look at ways they can best address the issues. An Action Brief outlined a number of key areas to being to focus their efforts

Our Next Steps

The National Alliance is focused on providing support to Coalitions who are seeking to understand how hospitals operate in their selective regions. They have partnered with Quantros and NASHP providing specific data points in hospital quality and financial metrics.

The National Alliance will also be providing consultative services in form data analytics through a dashboard displaying hospitals financials, transparency data and other key metrics. If interested, please reach out to Juan Hidalgo.

Featured Resources

Quantros partnership

Quantros Partnership

National Alliance and Quantros are partnering to provide critical information on the cost and performance of many of the nation’s hospitals.

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Rand 3.0 Study

Study conducted by RAND Corporation and Employers' Forum of Indiana on hospital price transparency. 

Achieving Value in Mental Health Support

Employer Hospital Price Transparency Project

Use the information and resources to learn more about the study, review the data collected, and learn how to participate in future studies.

Featured Coalitions in Action

Houston Business Health CoalitionThe RAND Hospital Price Transparency project has galvanized Houston employers like no other initiative. It has led to the creation of the HBCH Value-Based Purchasing Task Force. HBCH members believe it is the critical dataset to accelerate the market away from fee-for-service toward value-based purchasing. RAND 3.0 will further support employer efforts by including quality ratings subdivided by service location and type of service. Employers will now realize that pricing and quality do not always correlate. Implementation is expected in 2021. Learn more.
Bringing awareness to the wide price variation that exists for inpatient treatments was the goal of the Washington Health Alliance’s analysis of 171 treatments in 2016. Using the commercially contracted fees negotiated between insurers and providers for physicians and facilities, the Washington Health Alliance’s website allows the public to see the statewide variation low, median and high price ranges for many common inpatient treatments, as well as the difference within facilities.  Learn more.





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 healthcare expenditures.”

Gloria Sachdev, PharmD, President and CEO, Employers’ Forum of Indiana and Hospital Transparency Initiative Advisor