Issues and Challenges Pertaining to Financing in Providing Pricing Transparency in the American Health Care Industry

Abstract

In January 2021, hospitals and payer-specific entities in the United States were mandated to comply with the new pricing transparency rules. These rules applied to all standard charges a hospital applied to services provided to and for a consumer. From a financial perspective, the issue of price transparency in health care has for several decades surfaced as a legitimate concern of consumers, health care providers and payers. The aim of this article is to historically examine where and how pricing in health care began and to illustrate financial issues leading up to the current transparency in pricing required by health care payers and providers. A comparative analysis of issues and challenges pertaining to the transparency in pharmaceutical product pricing between the United States and India is also provided in brief.