Sunday, August 17, 2014

If you ever thought prices in the U.S. health care delivery system made sense then look at this chart

Hospital price variation in California from The Incidental Economist (originally from this study).

And that's just the 5th to 95th percentile. The full range of prices for a comprehensive metabolic panel was was $35 to $7303. Yep, that's a 209-fold difference. Where else can you be charged 209 times more for the same test at different facilities? Even auto mechanics don't vary that much!

The authors conclude: These findings demonstrate the seemingly arbitrary nature of the charge setting process, making it difficult for patients to act as true consumers in this era of ‘consumer-directed healthcare.’