We are often asked: “What are you doing that is unique? How does the average consumer use your site to their advantage?”
First, we publish the same cost data the government publishes, but our “value-add” is we hopefully make it easier to access. In order for someone to gain access to the mass of data published, they would have to spend a long time just downloading the massive files from the CMS (In the case of the Medicare fee-for-service data) website. Then they would have to try to make sense if it all. The data provided by the government is also called “open data” in that it is free to access.
One way we “refine” the commoditized data is to arrange the physicians by service category and then let you compare the average Medicare allowed amounts for all the services a physician provided in 2012 to other providers in the same area. The goal is to provide consumers with enough intelligence to consider their options. If someone is going for a costly procedure, it is well worth taking the time to explore. Even in the competitively priced world of Medicare, there can still be vast differences in out-of-pocket costs.
Another set of data we present to consumers is the Hospital Consumer Assessment of Healthcare Providers and Systems results. These data are essentially high quality ratings that in most cases have a respondent rate of at least 300. So we would argue the survey data is much more relevant that any ratings site. These are detailed survey results completed by verified consumers that received an inpatient service. This is critical as it allows consumers to also consider quality of care.
The most obvious example of how we can add value is by bringing to light these cost differentials, especially if there is not a large divergence in survey response data. The best way to explain is by using an example. One study we ran was to look at the range of costs at the procedural level, the amount of times the service was performed at each hospital, and finally do a comparison of the consumer assessment results. Consider a major joint replacement in New Hampshire:
- The average out-of-pocket cost difference between the two hospitals that performed the highest number of these procedures (combined they accounted for 40% of the 2,310 total state procedures) was $1,150!
- 95% of respondents rated the lower cost hospital 7 or higher while 94% did for the more expensive hospital.
- While the lower cost hospital realized less revenue for performing this procedure, it actually did more of them! In simple terms, the more someone does something, the better is it assumed he or she gets at it. Call it experience or whatever, but we think the “market share of service count” is a lot more important than the market share of dollars…what’s that Warren Buffett quote? “Price is what you pay. Value is what you get”.
We will be working on the NH public claims file over the next few weeks. We look forward to keeping our Granite State friends up to date about our progress.
In the meantime, Concord Hospital appears to offer compelling value for certain services:
http://bit.ly/1BBXWOe
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