The report reviewed health plan transparency files from more than 3,000 hospitals and a similar number of ambulatory surgery centers to reveal stark variations in negotiated rates. It found both widely variable pricing and a lack of correlation between cost and quality of care:

Commercially insured patients across the country pay widely varying amounts for the same procedure, the costs of which primarily are underwritten by employers. Across six inpatient procedures, negotiated rates varied by an average ratio of 9.1 across the country.
Different payers negotiate significantly different amounts for the same procedure at the same hospital. For example, the average difference in price between the Aetna and UHC negotiated rate was equivalent to 30% of the national median price.
Within a sample of 10 hospitals that have been featured on various best hospital lists, there was no correlation between aggregate measures of cost and quality.
Across the six outpatient surgeries examined, the national median ambulatory surgical center rate was always lower than the median rate for hospital outpatient departments.

Instant Insights /

'Startling spread' found in commercial health care prices, with no correlation to quality

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