Issue link: https://beckershealthcare.uberflip.com/i/267523
12 This shortcoming is one that hospitals ought to address as soon as possible, because it is the next necessary step to successfully weather the transition to a price transparent world, according to Adam Powell, PhD, president of Payer+Provider Syndicate. "The first generation of price estimators is basically useless [to consumers]," says Dr. Powell. "They provide a rough average for providers. Most people know they are getting treatment and are trying to decide where to do it. They don't care about the average cost of treatment — they want to know what it will cost them at the actual providers they are considering using," he says, adding that the race to the bottom might threaten the sustainability of hospitals and their profits. Changing times Mr. Kuehn puts the situation plainly: "The train has left the station, and the pres- sure's on," he says. "Avoiding the issue could cost a hospital everything. If they can't price correctly, it could mean their business — though that's an extreme — and it could mean their reputation as well. If they don't have the data and analytics capability to cost and then price their services, they have to start today. Otherwise it could cost them literally in the millions, tens of millions in both real and opportunity costs." That's the long and short of it. Price transparency is here to stay, and the best hospitals will find ways to adapt, dovetailing quality and price and partnering with consumers to lead them to value in care. While the way forward is beginning to look clearer, there are no foregone conclusions about winners and losers in this scenario. Transparency is in its early days, and it is still possible to weather the storm. Dr. Lynch agrees: "I think the impact has the potential to be huge, but as of yet it's still very tar- geted efforts on very targeted procedures by leading-edge corporations. But the tip of the potential iceberg is here." n 200