How does the increase in transparency of healthcare prices affect the healthcare industry?

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How does the increase in transparency of healthcare prices affect the healthcare industry?

On the 24th of June, President Donald Trump issued an official executive order which aims to reduce healthcare costs and prices by increasing the transparency of the prices in healthcare. 

This order was signed to decrease the costs and prices of healthcare services. 

The transparency of the prices allows the patients to freely examine the kind of treatment and service they’re looking for within a certain price range. 

As this order has just been issued, it isn’t detailed enough to address all sorts of questions, but just like past decisions taken for the healthcare sector, this issued order will also conduct new procedures and regulations as time goes on.  

As President Trump aims to increase the competition and choice available in the healthcare industry, he has decided to take a bold step towards advancing the healthcare industry. 

According to Trump, lowering the prices and increasing price transparency will somehow allow the patients to be in control of their choices. 

The Department of Health and Human Services was instructed to design and develop new guidelines regarding healthcare services. 

The responsibility of providing precise information on the costs that each service will be charging, and the costs the patients will be fulfilling, falls under the HSS department. This department has a major role in implementing the order practically. 

To improve the balance of the healthcare sector, the President believes the public plays a major responsibility in improving it. If the public decides to take responsibility for the way the healthcare industry is balanced, then it will be the first step in achieving the goal of producing a competitive healthcare industry.   

Due to variations in prices concerning these healthcare services, patients are eager to know how much a certain service and facility will cost before trying it. Patients go through the information to find these services at reasonable prices.  

The difference in price causes a difference in the treatment and quality a patient will be receiving.  

Patients have to face a lot of technicality and unfairness when they’re looking for affordable reliable healthcare services. Some factors are then compromised. This causes a huge peak in the price of these services and accessibility is limited.

The transformation of the entire healthcare industry relies on the correlation between quality and price. Once these prices and rates are disclosed publicly, the patients find it reassuring knowing about the quality and treatment they will get in exchange for the price for that specific service. 

Through this announcement, insurers and researchers will have tremendous access to data. 

Hospitals will have to negotiate with the government if some confidential information needs to be disclosed. The prices of these healthcare services will go down drastically which will help the public in saving a lot of money. 

Through this order, people won’t have to worry about the differences in quality and services. The competition increases and the industry will become balanced.

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