Developing a defensible pricing strategy

Scrutiny of hospital pricing is at an all-time high. Cracks in the healthcare financing system have been exposed by escalating costs, a growing number of underinsured and uninsured patients, and the rise of empowered consumers insisting on price transparency and accountability in an era of consumer-directed health care.

PricewaterhouseCoopers' Reatha Clark and Rick Wichmann discuss developing a defensible pricing strategy in this article that appeared in October 2006 hfm magazine. Pricing strategies are as complex and varied as the hospitals that employ them. The science of developing a pricing strategy lies in determining how to meet a series of competing objectives: balancing budgets while remaining competitive, complying with regulatory standards, providing community benefit, and withstanding legal scrutiny.