Price transparency is becoming a hot topic in today’s health care landscape, from both patient and managerial perspectives. Many health care entities are taking price transparency a step further, and are catering directly to the patient consumer by offering cash pricing.
Assume the role of a physician-owned, surgery center manager. The owners have called a meeting to discuss changing the center’s payment model to reflect cash pricing. This move would also eliminate insurance payments entirely. Respond to the following questions:
Research similar cash-pay models for surgery centers. In bullet point format, provide three (3) pros and three (3) cons of this model.
Discuss the impact moving to the cash-pay model would have on your staff and daily operations. What adjustments would need to be made?
What financial documents will you reference to compare prior years’ financials with projections of the cash-pay model?
How will your financial reporting practices be affected by no longer accepting insurance payments?