Why Hospital Prices Vary by Block Not by Quality

Episode 10 digs into hospital price transparency — a federal rule that took effect in 2021 requiring hospitals to post their negotiated rates publicly. Lucas and Luna explore why a knee replacement can cost $12,000 at one hospital and $42,000 at another across the same city. They break down the role of chargemaster markups, the lack of correlation between price and outcomes, and how employers and insurers are starting to use this data to steer patients toward lower-cost, high-quality facilities. The conversation anchors on a real-world example from a 2025 study by the Rand Corporation that found hospital prices vary more by geographic block than by quality metrics like infection rates or readmission rates. Lucas and Luna also discuss why the market hasn't disciplined prices yet — and what might finally force change. #HospitalPriceTransparency #HealthcareEconomics #Chargemaster #RandCorporation #KneeReplacement #NegotiatedRates #EmployerHealthPlans #PriceVariation #QualityMetrics #MedicalCosts #Economics #Healthcare #ServicesEconomy #FexingoBusiness #BusinessPodcast #HealthcarePolicy #ConsumerDrivenHealthcare #ReferenceBasedPricing Keep every episode free: buymeacoffee.com/fexingo