Can you defend your prices?

Irrational hospital pricing is raising the ire among consumers and Congress. Transparent pricing initiatives are underway at the State and Federal levels. Consumers and the press are asking legitimate questions about line item prices. Are you ready to explain or defend how your prices a derived?

Clearly the most defensible price is one that is based on actual cost. Over the decades with many hospitals being reimbursed or paid less than cost by Federal and Managed Care payers, shortfalls were subsidized through selective price adjustments or cross-subsidization. After years of deploying such techniques, hospital administrators are found today in an era of intense public price scrutiny with chargemasters incredibly difficult to explain.

Hospital Zero-Base Pricing™ can help

Developed by CBIZ and Panacea Healthcare Solutions, the Hospital Zero-Base Pricing™ program can get your prices back to square one. You will rest assure that your price is not only sufficient to maintain your net revenue objectives but that its foundation is based on cost. Some firms will re-align your prices to conform to the market while maintaining or increasing net revenue levels. With Hospital Zero-Base Pricing™ prices are established based on estimated or actual unit cost while maintaining or increasing net revenue levels. That's not to say market prices, APC rates or Fee Schedules are ignored. Before finalizing price models some prices will inevitably be adjusted to ensure that the cost based prices don't fall below contractual amounts and that others remain competitive. There's more... you will receive net revenue models for multiple pricing scenarios and an excellent audit trail for each line item for future reference when defending your prices.

Don't Let Lack of Unit Costs Hold You Back

If you don't have unit costs available, its not a problem. As part of our Hospital Zero-Base Pricing™ program, utilizing practical state-of-the-art systems and techniques estimated unit costs are developed within weeks without the burden or expense associated with the implementation of a traditional cost accounting system.