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Big price difference between 2 medical service providers for same procedure - acceptable?

Posted on 9/20/22 at 12:01 pm
Posted by Turf Taint
New Orleans
Member since Jun 2021
6010 posts
Posted on 9/20/22 at 12:01 pm
Coincidentally, 2 in family need X-rays and MRIs right now (no wife beater comments, please! Father time comments are appropriate and welcome!)

What is the same?
Both on same exact insurance plan using same annual deductible at nearly the same time, etc. Non issue.

What is different?
Ortho A (Clinic) MRI costs 3X more than Ortho B (Hospital) MRI costs


I appreciate that clinic and hospital models and cost structures are different.

The question: Is 3X difference acceptable?

Wish the hell I could shop around with more visibility and flexibility to help drive more pricing efficiency in market and between these 2 medical services channels.

3X is ridiculous to me
Posted by Witty_Username
Member since Jul 2021
448 posts
Posted on 9/20/22 at 12:09 pm to
quote:

Ortho A (Clinic) MRI costs 3X more than Ortho B (Hospital) MRI costs

Does the cost from the hospital include reading the image? I'm not sure that would increase it to 3x but just a thought. Also, is the Doctor that will read the image at the hospital in network? The hospital may be in network, but the doctor may not.
Posted by Napoleon
Kenna
Member since Dec 2007
69204 posts
Posted on 9/20/22 at 12:14 pm to
I was seeing my in-network doctor one time. She asked a colleague a question. I never talked to the doctor. He came in for one second. He was out of network. That fricker tacked on $400 to my bill for consultation.
Then I had to fight to get it taken off.


Our health system is screwed but we are too political to fix it.
No one will agree.
Posted by WaWaWeeWa
Member since Oct 2015
15714 posts
Posted on 9/20/22 at 12:14 pm to
Your insurance is going to pay what is negotiated. It doesn’t matter what the clinic bills.

You will pay your same deductible in both situations

Every insurance company pays a different amount so to make sure there aren’t any screw ups (like under billing a certain plan that pays more) the clinics will just charge a much higher rate to every insurance company. The insurance company then corrects the bill down to their allowable amount.

People read medical bills without any explanation of the system, this isn’t their fault but it leads to false assumptions

The clinic isn’t making 3x as much as the hospital.
This post was edited on 9/20/22 at 12:16 pm
Posted by Epic Cajun
Lafayette, LA
Member since Feb 2013
32736 posts
Posted on 9/20/22 at 12:16 pm to
Insurance companies have different fee schedules for different providers/locations. Essentially their contracted rate will be different based upon the place that the service occurs. Even if they would both be clinics, you'd see a discrepancy there. Also, are you certain it is the exact same procedure being done at both facilities?

ETA: also note that the clinic will essentially have one fee schedule for procedure x regardless of the fact that the allowable for that procedure for insurance company y is 50% of that amount, because the allowable for insurance company z might be 100%. They charge all insurance companies the same, regardless if they will only receive 50% from company x and possibly 25% from another.
This post was edited on 9/20/22 at 12:20 pm
Posted by VolunGator
Franklin, TN
Member since Jan 2020
1155 posts
Posted on 9/20/22 at 12:43 pm to
Open versus closed machine?

Size of magnet?
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37161 posts
Posted on 9/20/22 at 12:53 pm to
quote:

What is different?
Ortho A (Clinic) MRI costs 3X more than Ortho B (Hospital) MRI costs


By "costs" do you mean the make believe number on the bill, or the actual amount you have to pay once insurance does their thing?
Posted by LSUfan4444
Member since Mar 2004
53963 posts
Posted on 9/20/22 at 12:55 pm to
quote:

Ortho A (Clinic) MRI costs 3X more than Ortho B (Hospital) MRI costs


In general, charges billed at a hospital location will be higher than the same services billed from a clinic setting.
Posted by MorbidTheClown
Baton Rouge
Member since Jan 2015
66364 posts
Posted on 9/20/22 at 12:56 pm to
you get what you pay for
Posted by LEASTBAY
Member since Aug 2007
14324 posts
Posted on 9/20/22 at 1:00 pm to
quote:

Both on same exact insurance plan using same annual deductible at nearly the same time, etc


Do they work together at the same company, if not I find this very unlikely that it's the same plan.
Posted by PoppaD
Texas
Member since Feb 2008
4953 posts
Posted on 9/20/22 at 1:55 pm to
I've said for a while that since more of us are on high deductible health plans with hsa savings plans Physicians should be forced to have more transparent prices. Each practice should have a published cash price list for procedures.

They sold high deductible plans and health savings accounts as having more choice in your Healthcare but how the hell can you make choices with no prices.
This post was edited on 9/20/22 at 2:06 pm
Posted by Areddishfish
The Wild West
Member since Oct 2015
6284 posts
Posted on 9/20/22 at 2:07 pm to
quote:

Ortho A (Clinic) MRI costs 3X more than Ortho B (Hospital) MRI costs


I'm actually surprised. When I have testing in hospitals it is always way more than if I can do it at freestanding clinics. Nowadays though, the freestanding clinics are owned by the hospital haha.
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