Posted: January 4th, 2024

How Hospital Charges Affect Patient Satisfaction for Lower-Income Families

How Hospital Charges Affect Patient Satisfaction for Lower-Income Families

Patient satisfaction is an important measure of healthcare quality, as it reflects the extent to which patients' expectations and needs are met by the healthcare system. However, patient satisfaction is not equally distributed across different socio-economic groups, and lower-income families often face more barriers and challenges in accessing and affording quality healthcare. In this blog post, we will discuss how hospital charges, one of the main components of healthcare costs, affect patient satisfaction for lower-income families, and what can be done to improve this situation.

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Hospital charges are the amounts that hospitals bill for the services they provide, such as tests, procedures, medications, and room and board. However, these charges do not reflect the actual costs of providing these services, nor the amounts that hospitals receive from different payers, such as insurance companies, government programs, or patients themselves. Hospital charges are often inflated and vary widely across different hospitals and regions, making it difficult for patients to compare prices and shop for the best value.

For lower-income families, hospital charges can pose a significant financial burden, especially if they are uninsured or underinsured, meaning that they have high deductibles or co-payments that require them to pay a large portion of their medical bills out of pocket. According to the 2019 National Health Interview Survey, 8.5% of Americans delayed or did not receive medical care, 14.7% delayed or did not receive dental care, and 5.6% did not get prescription medication due to cost (National Health Council, 2023). These delays or foregone care can have negative consequences for patients' health outcomes and quality of life.

Moreover, hospital charges can also affect patient satisfaction with the healthcare system, as they influence patients' perceptions of the value and fairness of the services they receive. A study by Xesfingi and Vozikis (2016) found that patient satisfaction with the healthcare system was negatively associated with private health expenditures, which include out-of-pocket payments by patients. The authors suggested that high private health expenditures may reduce patient satisfaction by creating a sense of dissatisfaction with the quality or quantity of services received relative to the price paid.

On the other hand, patient satisfaction with the healthcare system was positively associated with public health expenditures, which include government spending on health programs and subsidies. The authors argued that public health expenditures may increase patient satisfaction by improving access to care, reducing financial barriers, and enhancing equity in the healthcare system.

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Therefore, one way to improve patient satisfaction for lower-income families is to reduce hospital charges or provide more financial assistance to help them afford their medical bills. Some possible strategies include:

- Implementing price transparency policies that require hospitals to disclose their charges and negotiated rates with different payers, so that patients can compare prices and make informed decisions about their care.
- Regulating hospital charges or setting price caps to limit the variation and inflation of hospital prices across different regions and providers.
- Expanding public health insurance programs, such as Medicaid or Medicare, to cover more lower-income families and provide them with more comprehensive benefits and lower cost-sharing.
- Providing more financial assistance to lower-income families through sliding fee scale programs, charity care policies, or discounts that reduce their hospital bills based on their income level and ability to pay.

By reducing hospital charges or providing more financial assistance to lower-income families, we can improve their access to quality healthcare and enhance their satisfaction with the healthcare system. This will not only benefit their health outcomes and well-being but also contribute to a more efficient and equitable healthcare system for all.

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References:

National Health Council. (2023). Limited Access: Poverty and Barriers to Accessible Health Care. Retrieved from https://nationalhealthcouncil.org/blog/limited-access-poverty-and-barriers-to-accessible-health-care/

Xesfingi, S., & Vozikis, A. (2016). Patient satisfaction with the healthcare system: Assessing the impact of socio-economic and healthcare provision factors. BMC Health Services Research, 16(1), 94. https://doi.org/10.1186/s12913-016-1327-4

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