Projected Effects of New Hospital Price Transparency Rules 

A recent Health Affairs blog detailed the short-term consequences of the hospital price transparency rule, which requires hospitals to disclose standard prices for procedures. The blog asserts that the rule may have severe repercussions for reimbursement rates for rural hospitals who are already battling insufficient reimbursement. The transparency rules take away the hospital’s negotiating power with private payers, who often pay a higher price to recover losses from public programs. As a result, rural hospitals may continue to lose revenue. Forty-seven percent of rural hospitals already operate in negative margins, prior to the implementation of the hospital price transparency rule. The final rule is expected to go into effect on January 1, 2021.