FEATURED: Point of view
Hospital Sales and Services
If you're an optimist, you might think healthcare does a pretty good job accurately pricing transactions, because more than 99% of prices go through the first time. But Cardinal Health is a Lean Six Sigma company, so we know that ultra-high levels of accuracy are both possible and desirable.
When about one-half of 1 percent of healthcare transactions have pricing mismatches, that means millions of errors occur across the industry every day. In a time of great pressure on margins, our industry should continue to accelerate efforts to get prices right the first time.
Pricing accuracy is the ability to get a transaction price right (and agreed upon) at the time of the original order and invoice – without further research or back and forth among parties. Our industry dedicates many employees to figuring out what prices should be paid under a signed contracts. When the right price isn't clear, invoices get kicked out or only partially paid.
This is a solvable problem. Everyone wins. Manufactures get paid faster. Providers get the right products at the GPO-negotiated price. And patients and insurers pay less for overhead. Accurate pricing means more cost-effective healthcare.
As a distributor, Cardinal Health administers prices and has a deep understanding of how the system works and how it can be improved. How can our industry improve pricing accuracy?