MIHPC Encourages the Public to Shop Around for Healthcare
CONTACT: Stacy Leick, 989.600.9928, stacy@mihpc.org
LANSING, Mich. – The Michigan Health Purchasers Coalition (MIHPC) has completed a series of studies examining the significant price gaps across hospitals for various healthcare procedures. These findings aim to inform individuals, families, and employers about pricing disparities, helping them make more cost-effective healthcare decisions.
“It is so important to do your research prior to receiving any medical treatment - anything from a hip or knee replacement, a brain scan, an endoscopy, or childbirth,” said Bret Jackson, President of MIHPC. “Patients who invest their time in finding the most cost-effective procedures, can receive quality services while saving themselves hundreds - if not thousands - of dollars. Just like one would when shopping for a car, consumers should explore their options when it comes to healthcare procedures.”
The studies outlined below reveal significant variations in the cost of these procedures across hospitals statewide in Michigan. MIHPC’s aim is to highlight these pricing disparities and increase awareness about the importance of cost transparency in healthcare:
- This report finds that choosing the right hospital for this procedure can result in 49% savings for individuals and 65% savings for an employer with 150 employees.
“In Grand Rapids alone, we found the price for an endoscopy at U of M-West is $198 whereas at Corewell the price is $289. A nearly $100 difference in the same geographic area is exactly why I encourage people to do their research on where to schedule their procedures, finding what works best for them,” said Jackson.
- Key findings within this report are found in the metro Detroit area - the price for a cesarean delivery at a major hospital varies by over $7,000.
- Similarly, depending on the system, price variation for both vaginal and cesarean delivery ranges on average, between $1,000 - $8,000 at a top-rated facility.
- For a company with 150 employees who had a vaginal birth within the Corewell Health system, selecting a lower-cost hospital could result in over $200,000 in total savings.
- Total hip and knee replacements within the metro Detroit area vary by over $20,000.
- Similarly, depending on the system, price variation for hip and knee replacement procedures ranges on average, between $1,000-$23,000 at a top-rated facility.
“This extreme difference in pricing should be a wake-up call to employers and families,” said Jackson. “Individuals can choose a hospital at a much lower price range. For example, in Flint you can get a knee or hip replacement at Henry Ford Genesys for $6,108 or you can go to McLaren Flint for $14,826. From the employer perspective, a company with 150 employees can choose a lower-cost hospital within the Henry Ford Health System which could lead to savings of more than $3,000,000.”
- Receiving an MRI brain scan in Ann Arbor versus Jackson can be a cost difference of $461. For an MRI brain scan at the University of Michigan Ann Arbor the cost is $828 whereas for the same scan at Chelsea Hospital, it is $421.
- Within the metro Detroit area, an MRI brain scan varies by over $200. Similarly, depending on the system, price variation for a brain MRI scan ranges on average, between $100 to over $300.
- For a company with 150 employees, selecting a lower-cost hospital for an MRI brain scan within the Henry Ford Health System could result in savings exceeding $10,000.
- In the Flint area, a CT brain scan at a high-quality hospital varies by over $200.
- Similarly, depending on the system, price variation for a brain CT scan ranges on average, between $50 to over $150 at a top-rated facility. Choosing a hospital at a lower price range can lead to significant cost savings.
- For a company with 150 employees, selecting a lower-cost hospital for a brain CT scan within the McLaren Health System could result in savings exceeding $20,000.
“Not all hospitals and health systems take part in price transparency initiatives, as shown by the absence of certain hospitals and health systems in these reports,” said Jackson. “This lack of transparency creates challenges for employers who are trying to determine the best value and highest quality care for their employees. We need transparency across the board on all procedures. The drastic difference in pricing from hospital to hospital should cause individuals to take notice and begin to shop for their healthcare. There are ways to save, you just have to treat it like you would any big purchase.”
Michigan Health Purchasers Coalition (MIHPC) is a 501(c)(4) statewide coalition dedicated to mobilizing employers, families, and healthcare stakeholders to address critical issues in Michigan's health care system. MIHPC’s initiatives include increasing hospital price transparency, prohibiting anti-competitive contracts and billing, increasing oversight on consolidations and mergers, and incorporating fair pricing among all payers of healthcare. For more information, please visit mihpc.org.
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