Making America Healthy Again by Empowering Patients with Clear, Accurate, and Actionable Healthcare Pricing Information
February 25, 2025
Action Summary
- Purpose: Address long-standing opacity in U.S. healthcare pricing, which has led to inflated costs for patients, employers, and taxpayers by empowering patients with clear and accurate pricing information.
- Historic Context: Builds upon significant steps taken during the first term, including Executive Order 13877, which required hospitals and health plans to publicly post comprehensive pricing information.
- Economic Impact: Prior analyses indicate potential savings of up to $80 billion by 2025 and a possible 27% reduction in costs for 500 common healthcare services, with initial data showing a 6.3% annual decline in the most expensive service prices.
- Policy Objectives:
- Promote universal access to transparent, standardized, and timely healthcare pricing information.
- Enhance enforcement of existing price transparency requirements to overcome stalled Federal progress.
- Expand and update guidance to ensure patient empowerment and improved healthcare decision-making.
- Implementation Measures:
- Within 90 days, require the disclosure of the actual prices (not estimates) of healthcare services and items.
- Issue updated guidance or regulatory actions for standardized and easily comparable pricing data across hospitals and health plans.
- Revise enforcement policies to ensure complete, accurate, and meaningful reporting of pricing data.
- General Provisions:
- Clarifies that agency authority and existing legal or budgetary constraints remain unaffected.
- Specifies that the order does not create any enforceable rights against the U.S. government.
Risks & Considerations
- The Executive Order on healthcare price transparency could lead to increased scrutiny and accountability for healthcare providers, including those affiliated with Vanderbilt University Medical Center. This may require adjustments in how pricing information is managed and disclosed.
- There is a risk that the increased transparency requirements could lead to administrative burdens and potential compliance challenges for healthcare providers, necessitating additional resources to ensure adherence to the new regulations.
- The focus on price transparency may drive competition among healthcare providers, potentially impacting pricing strategies and financial planning for university-affiliated healthcare services.
- Vanderbilt University may need to consider how these changes in healthcare policy could affect its healthcare-related programs, particularly in terms of curriculum adjustments to prepare students for a more transparent healthcare environment.
Impacted Programs
- Vanderbilt University Medical Center may need to enhance its systems for managing and disclosing pricing information to comply with the new transparency requirements, potentially impacting operational processes.
- School of Medicine at Vanderbilt could see increased demand for expertise in healthcare policy and administration, presenting opportunities for research and collaboration with federal agencies.
- The Owen Graduate School of Management might need to adjust its healthcare management programs to incorporate new regulatory and compliance aspects related to price transparency.
- Vanderbilt’s partnerships with healthcare providers and insurers may need to be reevaluated to ensure alignment with the new transparency policies and to maintain competitive advantage.
Financial Impact
- The implementation of price transparency regulations could impact the financial operations of Vanderbilt University Medical Center, potentially affecting revenue streams and cost structures.
- Vanderbilt University might experience changes in funding opportunities, particularly if federal grants prioritize research and development in healthcare transparency and policy reform.
- There may be increased opportunities for Vanderbilt to secure funding for research in healthcare economics and policy, particularly through collaborations with the Department of Health and Human Services and other federal agencies.
- As healthcare transparency becomes more prevalent, there could be a shift in the demographics of patients seeking services at Vanderbilt-affiliated healthcare facilities, potentially affecting service demand and financial planning.
Relevance Score: 3 (The order presents moderate risks typically involving compliance or ethics.)
Key Actions
- Vanderbilt University Medical Center should prepare to comply with enhanced healthcare price transparency regulations by ensuring that all pricing information for services is complete, accurate, and easily accessible to patients. This will involve updating systems to provide standardized and comparable pricing data.
- The Office of Health Affairs should monitor updates from the Secretary of Health and Human Services regarding new guidance or regulatory actions related to price transparency. This will help Vanderbilt stay ahead of compliance requirements and potentially influence policy through advocacy.
- Vanderbilt’s Health Economics and Policy Research Center should conduct studies on the impact of price transparency on healthcare costs and patient decision-making. These insights can be used to inform policy recommendations and enhance Vanderbilt’s reputation as a leader in healthcare research.
- The School of Medicine should incorporate training on healthcare price transparency into its curriculum to prepare future healthcare professionals for the evolving landscape of patient-centered care.
Opportunities
- Vanderbilt can leverage its expertise in healthcare management to develop new programs or partnerships focused on improving healthcare price transparency. This could include collaborations with other institutions or healthcare providers to create innovative solutions for price comparison tools.
- The emphasis on empowering patients with price information presents an opportunity for Vanderbilt’s Patient Advocacy Program to expand its services, helping patients navigate healthcare costs and make informed decisions.
- By engaging in public discourse and policy advocacy, Vanderbilt can position itself as a thought leader in the national conversation on healthcare transparency and reform. Hosting conferences and workshops on this topic can further establish Vanderbilt as a hub for innovative healthcare policy discussions.
Relevance Score: 4 (The executive order necessitates major process changes for Vanderbilt’s healthcare-related programs and presents significant opportunities for research and policy influence.)
Timeline for Implementation
- Within 90 days of February 25, 2025: The Secretary of the Treasury, Secretary of Labor, and Secretary of Health and Human Services are required to take action to disclose actual prices, update guidance for pricing standardization, and reinforce enforcement policies.
Relevance Score: 2
Impacted Government Organizations
- Department of the Treasury: Tasked with issuing updated guidance and enforcement measures to ensure that healthcare providers disclose the actual prices of services and prescription drugs.
- Department of Labor: Responsible for collaborating on policy and enforcement actions aimed at standardizing healthcare pricing information and ensuring compliance with transparency requirements.
- Department of Health and Human Services (HHS): Charged with implementing and enforcing updated price transparency regulations to empower patients with clear and actionable healthcare pricing information.
Relevance Score: 2 (A small number of Federal Agencies are impacted by the order.)
Responsible Officials
- Secretary of the Treasury – Responsible for implementing and enforcing updated healthcare pricing transparency regulations, including disclosure requirements and standardized data reporting.
- Secretary of Labor – Tasked with facilitating and enforcing actions that ensure clear, accurate, and actionable healthcare pricing information.
- Secretary of Health and Human Services – Charged with rapidly implementing directives to standardize healthcare pricing information, issue regulatory guidance, and enforce compliance among hospitals and health plans.
Relevance Score: 5 (Directs key Cabinet-level officials, including agency heads, to take comprehensive action on healthcare price transparency.)