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plans in the health insurance exchange is $5,000 per household. Since patients
are footing more of the bill directly, they are more interested in value.
• Transparency is good for business. Since the St. George (Utah) Surgical
Center began posting its prices online 2 years ago, they've attracted patients from
all over the country, says Mr. Hadlock. Dr. Makary adds that while prices will likely
come down over time as more facilities post their prices online, a facility that gets
ahead of the curve now has a huge opportunity to grow its business.
• Getting started. Start by posting prices for your procedures that are ideal
candidates — those with a low risk of complications and minimal variability.
Ideally the goal is to say to patients, "We'll give you a predictable price for a pre-
dictable procedure," says Mr. Hadlock. You'll first have to determine the true
cost of your procedures.
• More transparency is needed. Dr. Makary believes that quality transparen-
cy must accompany price transparency. "We're still in the process of developing
sound metrics to judge quality, but that's where we're headed," he says. "People
increasingly want to know that health care is a competent marketplace, not one
that lacks transparency." St. George posted not only its prices, but also its infec-
tion rates and patient satisfaction scores. "If you combine all those transparency
factors, consumers can make educated decisions about their care, which is
what health care is all about," says Mr. Hadlock.
OSM
