Some Kansas hospitals fall short of ‘price transparency,’ report shows; could face large fines

Capitol Bureau

TOPEKA, Kan. (KSNW) — Under the “Price Transparency” rule that went into effect earlier this year, hospitals are required to report the cost of services online. Still, according to health advocates, most hospitals across the nation have been slow to comply.

A report from the Patient Rights Advocate shows that 94 percent of the hospitals surveyed were not fully posting the prices they charge patients and the rates negotiated with insurers.

The rule allows consumers to know upfront how much they are spending before getting stuck with a large medical bill.

“This allows you to shop for those services, and look for where you can get the care that you need at the best price,” said Phillip Steiner, an analyst for Kansas Health Institute.

On Monday, Steiner told Kansas Capitol Bureau about recent data collected on the Price Transparency Rule’s importance, especially for consumers.

“We found that there’s a lot of variation, depending on where you go to get care,” Steiner said. “There can be a two-to-three-fold difference in the prices that you might pay for the services that you receive.”

According to Patient Rights Advocate, their report found four Kansas hospitals that they said have not adequately complied with the rule. It lists Shawnee Mission Medical Center in Merriam, St. Luke’s Hospital of Kansas City, Stormont Vail Hospital in Topeka, and the University of Kansas Hospital in Kansas City as being noncompliant.

For example, some faults were found in compliance with listing negotiated rates and for “payer and plans.”

Steiner said most hospitals in Kansas have tried to comply with the rule, which is aided with more guidance being put out by federal agencies, like CMS (Centers for Medicare & Medicaid Services).

A spokesperson for the Kansas Hospital Association said the organization has also tried to provide more information to hospitals.

Hospitals and health systems are working to help patients access useful information about their costs, including through the use of price estimators and other tools. The Kansas Hospital Association has also provided information and guidance to hospitals on implementing the price transparency rule requirements. Some parts of the rule require significant staff resources that have at times needed to remain directed at the COVID-19 response.”

Kansas Hospital Association spokesperson

Health officials said they’re encouraging hospitals to be consistent with federal policy.

“I think hospitals are genuinely trying to comply,” he said. “There’s some confusion and complexity about what exactly the new rule required. Hospitals know that there’s a penalty for not complying.”

The rule was put in place by the Trump administration, going into effect in January of this year. President Joe Biden’s administration promised to crack down on hospital compliance just earlier this month.

Currently, penalties for the rule sit at about $300 per day for hospitals that have not complied, which Steiner said can vary based on the hospital’s number of beds. Harsher penalties are expected to come in 2022.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Download the KSN News App and stay up-to-date wherever you are. You can even watch KSN News live for free!
Click here to get the app
Get it in the App store
Get it in the Google Play store

KSN Storm Track 3 Weather

Trending Stories