Becker's Hospital Review

24 CFO / FINANCE 17 of 120 hospitals couldn't provide prices for hip replacements in 2012 — That number more than tripled to 53 in 2016 By Morgan Haefner S ixty-plus state healthcare pricing web- sites existed in 2012. e Government Accountability Office commanded CMS to prioritize price transparency in 2014. Increased interest in making healthcare pric- es available is apparent, but what remains unclear is whether that has incentivized hos- pitals to provide more price information, according to a research letter published in JAMA Internal Medicine. Researchers from the University of Toronto, Boston University School of Medicine and New York City-based Mount Sinai Health Network returned to their 2012 survey of 122 hospitals' ability to provide pricing for a hip re- placement surgery to compare how the hospi- tals performed in 2016. Twenty of the original hospitals were ranked as top orthopedic hospi- tals by U.S. News & World Report in 2011-12, and 102 were not ranked, with two pulled from each state and the District of Columbia. Of the original 122 hospitals, 120 facilities re- mained open and independent in 2016. From June to August 2016, researchers phoned each hospital up to five times posing as a granddaughter seeking price information for a hip replacement for her 62-year-old grand- mother. Researchers asked hospital staff for the lowest cash bundled price for the pro- cedure, including all hospital and physician fees. Hospitals only able to provide specific fees were asked for the name of an orthopedic surgery practice the researchers could contact to verify physician fees. Researchers were able to obtain the bundled price for a hip replacement surgery from eight hospitals in 2016, down from 19 hospi- tals in 2012. By contacting the hospital and physician separately, the researchers obtained complete price estimates from 25 hospitals in 2016, down from 57 in 2012. ere was an in- crease in the number of hospitals that could provide partial price estimates to researchers: 34 in 2016 compared to 27 in 2012. Howev- er, the number of hospitals unable to provide any price estimate more than tripled to 53 in 2016, compared to 17 in 2012. "We found no evidence of improvement in hospitals' ability to provide price estimates or reductions in the estimated price for [to- tal hip arthroplasty] between 2012 and 2016," the researchers concluded. "Our results pro- vide sobering evidence that substantial efforts from government and industry to improve pricing transparency have had little tangible effect on availability of prices." n Massachusetts businesses unite to cut healthcare costs: 6 things to know By Kelly Gooch A group of Massachusetts employers formed a coali- tion with the goal of reducing healthcare costs by $100 million over two years, according to a WBUR report. Here are six things to know about the coalition: 1. The coalition includes at least 20 groups representing retailers, manufacturers, restaurants and bankers and is open to including more members. 2. Coalition representatives said that they plan to work on the campaign with strategic partners, such as the Massa- chusetts College of Emergency Physicians and the Massa- chusetts Health and Hospital Association, as well as other healthcare stakeholders. 3. The campaign will initially focus on cutting costs in the emergency department. Specifically, the coalition seeks to reduce avoidable ED use by 20 percent to decrease healthcare costs by more than $100 million over the next two years. 4. The coalition writes: "Avoidable ED use is a particular- ly strong area for coordinated action. The cost of an ED visit can be five times more expensive than the cost of care provided in a primary care or urgent care setting. The Massachusetts Health Policy Commission conservatively estimates that, across the state, the annual cost is $300 mil- lion to $350 million on avoidable ED visits for commercial- ly insured members alone. These visits also contribute to spending in the state's Medicaid program, and reducing avoidable ED use is a key goal of MassHealth's new Ac- countable Care Organization program." 5. The coalition's efforts to achieve its goal will focus on em- ployee engagement, data and measurement, multisector collaboration and policy advocacy. Examples of efforts in- clude providing employees with information to help them receive the best and most appropriate care for particular medical issues, as well as trying to enhance employer da- ta-sharing so all employers get routine information about avoidable ED use among their employees. 6. MACEP said it, too, seeks to cut healthcare costs in Mas- sachusetts but is concerned that reducing ED revenues could have a negative affect for patients who need care in emergency rooms, reported WBUR. MACEP's president, Scott Weiner, MD, said in the report: "Reducing avoidable visits is a lot harder than it sounds. If it could be done so readily it would have been done. Copays are already higher for ED visits, and patients still come, so we have to figure out what need isn't being met." n

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