July 2018
Spotlight: Developing an Effective Pricing Strategy for Shoppable Services
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Hospital and health system margins are under mounting pressure as employers, payers, and non-hospital competitors take aim at non-emergent, outpatient “shoppable services.” Such services include imaging, lab tests, and certain elective surgeries, which can contribute as much as 25 percent of a health system’s contribution margin.
Faced with growing out-of-pocket costs with the rise of high-deductible health plans, more healthcare consumers are comparing their options for these services based on access, experience, and price, before deciding where to obtain care. At the same time, employers and payers are pushing legacy healthcare providers to move shoppable services from high-cost inpatient facilities to lower-cost outpatient settings.
Hospital and health system leaders should be proactive in developing market-driven pricing strategies for shoppable services that help them achieve their long-term strategic and financial objectives, and stem losses from decreasing payment rates and increasing competition. This article outlines a four-step process that healthcare leaders can use in developing an optimal pricing strategy.
Introduction
Cost Pressures Rising
Pricing Strategy
Introduction
Cost Pressures Rising
Pricing Strategy
Introduction
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