Oregon to create hospital cost-comparison Website

The Oregon Association of Hospitals and Health Systems, which represents Oregon’s 62 community hospitals, on Tuesday celebrated the passage of a bill that will set up a groundbreaking hospital price transparency website.

The bipartisan bill, SB 900, supported by OAHHS and other stakeholders, passed the Legislature on Monday and is expected to be signed by Governor Kate Brown in coming days.

The bill directs the state to set up a user-friendly website that displays median prices for the most common inpatient and outpatient hospital procedures, as paid by commercial insurers, giving Oregonians a clearer view of the cost of care.

“Senate Bill 900 gives Oregonians a new resource for patient-friendly price transparency,” said Andy Davidson, president and CEO of OAHHS. “With a broad, bipartisan coalition of legislators and stakeholders behind the bill, Oregon should be proud that it will be leading the way in bringing price transparency to patients.

“Oregon hospitals applaud the efforts of all those involved, from legislators, to hospitals, to health care partners and beyond. This bill, in combination with hospitals’ other price transparency initiatives, will make a difference in our state.”

“SB 900 will allow me to better serve my patients in my practice as a physician,” said Senator Alan Bates (D-Ashland). “I will be able to get a sense of what my referrals will mean financially to my patients. Price transparency in the health care sector is long overdue, and today Oregon took a big step forward. I applaud the hospitals for championing this approach and look forward to working with them on implementation.”

“The health care system in Oregon is a national leader in many ways, and today we have taken a step toward leading on price transparency,” said Senator Jeff Kruse, (R-Roseburg). “Like other industries, health care needs to compete on price and seek to deliver the best value to its customers. SB 900 will move our state and its system in that direction and I commend all those involved in this effort.”

“Price transparency in Oregon got a huge boost when we passed SB 900,” said Representative John Lively, (D-Springfield). “Our constituents asked for tools to manage health care expenses and we heard them loud and clear. In passing this bill, we have set in motion a process that will lead to a valuable source of information for Oregonians, which will allows them to make informed choices about health care.”

Currently, Oregon receives an “F” on the influential Catalyst for Payment Reform Price Transparency scorecard, and SB 900 was designed with the intention of moving Oregon toward an “A.”

According to the group, one of the most important steps to receive an “A” is to pass legislation mandating price data be shown on a website in a consumer-friendly manner. SB 900 will accomplish that goal and will help move Oregon significantly up the ranks on the scorecard.

“We’ve worked hard to understand how to provide patients meaningful price information,” added Davidson. “This measure will serve as a starting point to ensure our state becomes a national leader in providing price information patients can use. Oregonians will now be able to see the prices paid for common procedures at hospitals, which is an important step forward.”

The price transparency bill is an integral piece of a three-pronged approach put forward by hospitals, which would allow Oregonians to understand health care prices in advance of care. Beyond the passage of the bill, OAHHS is:

* Working with members of the Oregon Health Leadership Council to build a plan that would provide insured Oregonians with cost estimates directly from their insurer and;
* Pledging to provide good-faith estimates to out-of-network patients in advance of care.

“Our three-pronged approach means that whether an Oregonian has insurance or not, whether they are in-network or out, they are able find out what a procedure will cost them ahead of time,” concluded Davidson. “We needed SB 900 to ensure that all the pieces are there to serve Oregonians.”

OAHHS’ push for price transparency follows the recent launch of a transparency website, to provide patients with user-friendly government data about the quality of care in Oregon hospitals. The website can be found at http://orhospitalguide.org/