Work

Price Variability of Eight Common Laboratory Tests across All Licensed Tennessee Hospitals

Year: 2024

Type: article

Abstract: BACKGROUND: In 2021, the United States implemented a federal price transparency mandate to help combat price variability across the country. Initial studies conducted within several months of the mandate showed persistent price variability. METHODS: To assess continued price variability for laboratory tests and factors associated with prices across all licensed hospitals in Tennessee approximately 2.5 years since the mandate, hospital websites were queried for gross, cash, and Blue Cross Blue Shield (BCBS) prices for common laboratory tests (n = 8). Hospital ownership and county demographic data including income, region, and population density were also collected. RESULTS: All tests showed considerable price variability. Gross price was set higher than cash and BCBS prices. For the majority (n = 6) of tests, cash was higher than BCBS price. Maximum to minimum price ratios for each test ranged from 29 to 114 for gross, 57 to 243 for cash, and 25 to 115 for BCBS prices. Gross and cash prices were associated with median household income of the hospital's county while BCBS prices were not. Overall, prices were associated with hospital county income, for-profit status, and region. CONCLUSIONS: Our study shows continued price variability in Tennessee 2.5 years after the federal price transparency mandate.

Source: The Journal of Applied Laboratory Medicine

DOI: 10.1093/jalm/jfae167

Authors: Stephanie A Hart, Ayesha Khan, Garrett S Booth, Joesph R Wiencek

Institutions: Vanderbilt University, Vanderbilt University Medical Center

Language: English

Topic: Healthcare Policy and Management

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Good health and well-being, Reduced inequalities

Open Access status: hybrid

Estimated APC paid: $4,423