Four Basic Questions in Are You Ready for Hospital Price Transparency?

The CMS final rules on hospital price transparency require hospitals to offer downloadable standard charges and negotiated rates with shoppable services on their website by January 2021. The CMS mandate adds a new layer of financial complexity to hospitals. As patients potentially comparisons shop, patients could choose less expensive providers creating additional revenue shortfall for the hospital, on top of the already precarious state of hospital finances caused by the SARS-CoV-2 pandemic.

But getting ready for January 2021 requires that four additional questions be asked and answered. You can't wait until January to react. By reacting, I do not mean adding the documents to your website. I am discussing preparations in responding, too, and being proactive in the marketplace.

Putting up the documents on the website is simple once the internal deliberations are resolved. Now comes the hospital's marketing strategy and tactical execution- internally and externally.

Image by Gerd Altmann from Pixabay

Here are the four basic questions for a successful launch for engaging the patient and community with pricing information.

1. Marketing Plan - How are you positioning the hospital and the newly available price and shoppable services information in the market, i.e., what is the detailed marketing plan?

2. Engagement Plan - What are your key engagement messages, and how will you engage patients and the community, and what channels- digital, social, and traditional will be used to provide the key messages?

3. Experience Plan - What is the training program and Q&As that have been developed that you are using to equip the employees who will most likely face questions from patients and the community regarding your prices and shoppable services?

4. Crisis Communications Plan - What are the talking points you will use to defend higher prices in services than your competitors? Or, what are your talking points when you decide to raise your lower prices to those higher prices of a competitor?

These four questions are not an afterthought, but a should foster a much-needed critical strategy discussion and tactical marketing execution in the new age of price transparency that is about to begin. The market can't be left to luck, and a "we'll deal with this if any questions come up" strategy. Pricing and shoppable services information will now be an essential part of the marketing, patient engagement, and experience strategy plans.

Image by Lennert Kraak from Pixabay

The power to make choices in medical care is moving from the hospital to the patient with price transparency. How you respond proactively in brand positioning, marketing communications, experience, and engagement will determine success or losing utilization and revenue.

Michael is a healthcare business, marketing, communications strategist, and thought leader. As an internationally followed healthcare strategy blogger, his blog, Healthcare Marketing Matters, is read in 52 countries and is listed on the 100 Top Healthcare Marketing Blogs & Websites ranked at No. 3 on the list by Feedspot.com. Michael is a Life Fellow, American College of Healthcare Executives. An expert in healthcare marketing strategy, digital marketing, and social media, Michael is in the top 10 percent of social media experts nationwide and is considered an established influencer. For inquiries regarding strategic consulting engagements, you can email me at michael@themichaeljgroup.com. Connect with me on Twitter, LinkedIn, and Facebook. Opinions expressed are my own.

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