SCHWARTZ HEALTHCARE-IT BLOG

Blue Book for Healthcare? Read Carefully.

President Bush recently announced that Medicare medical procedure costs will be made public to consumers. Health plans like Aetna are posting hospital charges, and services like Subimo and WebMD are offering cost and quality data.

An article recently in the Washington Post reports on HealthGrades effort to become the Kelley "Blue Book" of healthcare by selling cost data. This is laudable and inevitable as consumer directed healthcare gains steam. Consumers with Health Savings Accounts paying more out-of-pocket expenses will welcome such data. But scratch the surface and this data can be tricky if not deceptive.

Average costs can be deceptive and exclude quality issues. Consumers should be weary of misleading cost averages - cost ranges are more informative. HealthGrades' topics are procedures only and exclude office visits, tests and drugs. Beyond this, the cost doesn't define exactly what is included. Geographic regions, an important factor considering cost trends across the country, are limited. Consumers are wise to ask their health plans about quality indicators and consult additional quality sources.

Medicine is complex, health plans and doctors calculate rates differently, and quality definitions vary. Buying healthcare is nothing like buying a car, and quality can't be graded on a star basis like movie reviews. Only if accurate pricing is coupled with quality reports on doctors and hospitals can consumers make knowledgeable decisions. Otherwise consumers and their wallets will be in for a rude awakening.

Posted by Shawn Whalen on April 7, 2006 at 3:49 PM
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