A new report issued by the Oregon Health Authority (OHA) details the median amounts paid by commercial insurers for the most common inpatient and outpatient procedures that were performed in Oregon hospitals in 2014. Drawing on data collected in the All Payer All Claims (APAC) database, the report shows variation in prices for the same procedures among hospitals operating in the same region and across the state.
The report, “Oregon Hospital Payment Report 2014,” was mandated by Senate Bill 900, which was passed by the Legislature in the 2015 session. The goal is to provide a source of transparency to the public on hospital prices. Inpatient care accounts for as much as 30 percent of health care spending in the state.
“Hospitals perform vital procedures that save lives and improve quality of life for Oregonians,” said Lynne Saxton, Director of the Oregon Health Authority. “This report gives patients and policymakers an unprecedented look at the payments hospitals and commercial health plans have negotiated for the procedures Oregonians depend on hospitals to perform.”
According to the data provided in the report:
The paid amounts reported in the study reflect the charges commercial insurers paid for different procedures at different hospitals. However, these prices do not include all costs. For example, costs to patients in co-pays, deductibles or coinsurance are not contained in the data. Charges for outpatient procedures do not include additional professional fees.
The price of a procedure in a hospital depends on a number of factors. These factors should be taken into account when comparing charges between facilities. Here are some reasons that account for variations:
“Oregon’s community hospitals are proud to lead our state toward a more transparent health care system, starting with a clearer picture of prices paid for procedures in their facilities,” said Andy Davidson, president and CEO of the Oregon Association of Hospitals and Health Systems, which worked in 2015 to pass the legislation authorizing the report released today. “We commend the OHA for their thoughtful year one report. We believe this report, and the display of the data on our OregonHospitalGuide.org website, will lead the way toward a better grade on the national scorecard on price transparency issued annually by the Catalyst for Payment Reform organization.”
“Oregon Hospital Payment Report 2014” is the first of an annual series of reports on health care prices drawing from the APAC database. OHA will continue to report hospital prices and may provide data on other procedures, including procedures performed in non-hospital settings.
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The report is available as a PDF file and as a data file on the OHA Health Analytics website athttps://www.oregon.gov/oha/analytics/Pages/index.aspx.