Why Tech, Price Transparency Are Vital for Healthcare Sector

Although there are world leaders in healthcare, such as UCHealth in Colorado, Mayo Clinic in Minnesota and Utah Health, that have been praised on a global level for their work on price transparency, there is still a lot of room for improvement. A McKinsey study on the role of information transparency in making healthcare decisions is a good example of this. It found that more than 60% of patients surveyed required more information that would allow them to compare both costs and quality of care when deciding where to receive medical care.

When we talk about price transparency in healthcare, we refer to healthcare facilities ensuring that patients feel prepared, involved, and informed about the cost of the healthcare services they require. Receiving an estimated cost for procedures allows them to greatly reduce their uncertainty and prioritize the most important factors for them, enabling them to make the best healthcare decision.

In this context, it’s of great importance for medical centers to be able to make both their prices and their coverage (insurance and agreements) transparent. This is where technology is key.  Improving both patients’ financial information and healthcare institutions, allowing them to improve their processes and issue a greater number of more accurate estimates, is something we must work on.

On the one hand, receiving an estimated cost of procedures allows patients to greatly reduce their uncertainty and prioritize those factors that are most important to them, enabling them to make the best care decision. In addition, as stated in the book, Marketing Management, by Philip Kotler and Kevin Keller, providing a clear and transparent price helps consumers better assess a product’s (or service’s) perceived value. This can increase the likelihood of purchase, especially when the price is perceived as fair and reasonable, knowing the final value of the product or service generates a higher conversion or purchase rate. 

Complementing the above, a study conducted by Stanford University found that price transparency can lead to greater customer satisfaction and purchase intent. Consumers value honesty and clear information regarding price, which gives them a sense of security and confidence in their decision-making.  

In Mexico, the lack of clarity in the pricing of benefits impacts the population more than in other OECD countries, as the proportion of healthcare costs that households pay directly (out-of-pocket ) is the second-highest in the OECD . Coverage of a basic package of health services in Mexico is the lowest in the OECD at 89.3%. Out-of-pocket expenditures remain high at 41% of total health spending. This translates into excessive out-of-pocket payments restricting people's access to health services: 5.5% of households in Mexico experience catastrophic health spending and poor households are disproportionately affected.*

When healthcare systems do not provide adequate financial protection, the population may face financial difficulties in having to pay for healthcare services or simply not have enough resources to afford healthcare. Consequently, the lack of financial protection can reduce access to healthcare services, harm the population's health status, deepen poverty, and exacerbate socio-economic and health inequalities. On average in OECD countries, slightly over one-fifth of healthcare expenditure comes directly from out-of-pocket spending by patients. The population faces financial difficulties when the burden of out-of-pocket expenses is high in relation to their ability to pay. Low-income households and those who have to pay for long-term treatments, such as medication for chronic diseases, are particularly vulnerable.

Therefore, transparency of information and the implementation of technology in healthcare facilities become critical to enable patients to make the best decisions. Generating and managing clinical budgets for patients becomes a key issue and benefits both the health center and the population, thus contributing to improving people's quality of life. Having more satisfied patients will make them more loyal and there will be more trust in health institutions.

In this context, as a healthtech company, we are driving this change and supporting transparency of information because we believe it is essential for patients to make the best decisions. Our platform enables the generation and management of clinical budgets, so healthcare centers can provide an estimated cost to their patients in just one minute, with an easy-to-understand format and a copayment estimate.

Thus, we are contributing to the implementation of technology in Latin America’s healthcare centers, allowing them to provide clinical budgets efficiently and accurately, indicating the patient's copayment in real time. With this, we can clearly see how the digitization of healthcare processes has enabled greater price transparency, benefiting both individuals and medical centers. This contribution leads to an improvement in the journey and care model for patients, not only in Chile but also throughout Latin America.