Regulation, Policy, and Economic Efficiency

One of the assumptions of value-based care is that if consumers are aware of price, then they can make better decisions about the health care services they receive. In an effort to encourage this efficiency in health care, government regulation and policy has been designed to promote transparency of quality and cost information. For this Discussion, examine the following scenario and consider how regulation and policy on hospital cost transparency might improve economic efficiency. Scenario: On behalf of consumers, employers and local purchasers in your market are committed to slowing health care costs by improving visibility on hospital prices. A recent media story revealed that prices in your local market were the highest in the state. You are a member of a private sector consulting service that has been hired to help a hospital address transparency issues. The hospital would like to be more transparent in their cost and fee relationships with providers. Review the provided scenario. What are the advantages of transparency for both the hospital and the consumer? How might hospital cost transparency improve economic efficiency? Consider current (last 5 years) regulation and policy to compare hospitals based on their costs. Locate and review literature to support your recommendations. Analyze advantages of transparency for both the hospital and the consumer. Include how hospital cost transparency might improve economic efficiency. Then, recommend regulation and policy to compare hospitals based on their costs. Defend your recommendations. Getzen, T. (2015). Health economics for the healthcare administrator (Laureate custom edition). New York: Wiley. Chapter 14, “The Role of Government and Public Goods” (pp. 319–343) Chapter 17, “Economic Evaluation of Health Policy: The Patient Protection and Affordable Care Act of 2010” (pp. 408–424) Glied, S., & Miller, E. A. (2015). Economics and health reform: Academic research and public policy. Medical Care Research and Review, 1–16. https://class.waldenu.edu/bbcswebdav/institution/USW1/201970_27/MS_MMHA/MMHA_6400_WC/readings/USW1_MMHA_6400_Week06_HFMA.pdf