The Effects of Price Transparency Legislation on Hospital Pricing

Date of Award

Spring 2023

Document Type

Dissertation

Degree Name

Doctor of Healthcare Administration (DHA)

Committee Chair

Cynthia Smoak

Committee Member

Dave Meckstroth

Committee Member

Jennifer Harris

Abstract

Improved price transparency in the pricing for health care services has been found to be a major contributor to lowering costs and promoting efficiency in the U.S. health care system. This research study explores the effects of the 2019 federal hospital transparency rule on outpatient hospital prices using a non-experimental comparative quantitative study design. Using data from the Healthcare Cost Reporting Information System (HCRIS), the data analysis for this study explored pricing differences before and after the implementation of the 2019 federal price transparency legislation for hospitals in all 50 states. Specifically, the study examines whether there was a difference in prices between hospitals in low and high competition areas as well as the price transparency impact for states with All-Payer Claims Databases (APCD) legislation. The results show a significant price decrease between states that have prior APCD legislation when compared to states without prior APCD legislation and no significant differences between low and high competition areas. This research study provides the framework for additional research in the field to further investigate outpatient hospital price differences in various implementation phases of the federal hospital price transparency legislation. Hospital price transparency improvement is offered as an optimal solution to reduce wasteful health care spending and costs.

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