Pricing Strategies
The posting of what you will accept for 300 shoppable services creates an opportunity to look at pricing strategies again. Whether you use a straight multiple of Medicare reimbursement per service line, a sliding scale of multiples, or another methodology will determine charges and contractual allowances.
Reducing charges and contractual allowances strategically will begin to restore the important ratio of costs-to-charges. In addition, this will enhance price transparency while making charges more defensible and rational.
Also, a new pricing will strengthen the effectiveness of your patient engagement strategy which will reinforce patient loyalty, resulting in more patient testimonials and personal referrals.
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5 Key Strategies
Our algorithm’s predictive pricing analytics will implement 5 key strategies:
1. A more defensible and rational charge master with greater price transparency
2. Enhanced revenue by designated service and department where brand is strong
3. The ability to model various pricing scenarios with net revenue impacts by department
4. Position the hospital favorably in its market
5. Preserve net revenue while reducing contractual allowances strategically
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Deliverables
- A competitor analysis of prices for services to achieve desired market positioning and net revenue
- A consistent mark-up of costs after completing a thorough analysis of all reimbursement
- A detailed assessment demonstrating the benefit of a new pricing strategy in net revenue impact
- A net revenue-neutral analysis as one pricing scenario option
- Charges consistent with Mission, operational goals, and fiscal sustainability
- Summaries confirming net revenue impact by financial class and department
- A stronger negotiating position with payers for Contract terms
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Timeline
30 days to complete a comprehensive analysis with projected net revenue impact
30 days to finalize new pricing in the hospital charge master