Executives at Miami Children's Hospital have reduced the "theoretical prices" on its chargemasters so consumers will have a more reliable reference point for their out-of-pocket costs, according to a Miami Herald report.
Hospital Senior Vice President and CFO Tim Birkenstock said the change is part of a broader initiative to educate patients about what services they pay for opposed to providing price points that have little relation to their actual out-of-pocket costs, according to the report.
"We need to re-craft how we talk about what we charge, and we need to do it in a way that people who use our facility understand what they have to pay," he told the Miami Herald.
Miami Children's trimmed its theoretical prices on chargemasters by 30 percent, so the remaining prices will more accurately reflect what the hospital collects from insurers. What a consumer ultimately pays, though, will still vary depending on their health plan type, benefits and other factors.
The hospital is also developing fixed prices for a handful of its most common services, such as minor dermatological procedures and wound closures, removal of tonsils and circumcisions, according to the report.
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