Vox:
The absurdity of American health care pricing, in one chart
9 May 2018
We’ve known for decades now that there is widespread variation in what different hospitals charge for the same medical procedures. Study after study confirms this finding (one of my favorite studies shows that, in California, an appendectomy can cost anywhere between $1,529 and $186,955 depending on where it was performed). But a new paper from economists Zack Cooper, Stuart Craig, Martin Gaynor, and John Van Reenen sheds light on another fascinating type of variation: price differences within a single hospital. Their research is the first I’ve seen that shows insurers pay different prices for the same procedure at the same hospital.
Related publications
‘The Price Ain’t Right? Hospital Prices and Health Spending on the Privately Insured’, Zack Cooper, Stuart V. Craig, Martin Gaynor and John Van Reenen, mimeo, May 7 2018
http://www.healthcarepricingproject.org/sites/default/files/20180507_variationmanuscript_0.pdf