Hospital treatment is becoming more expensive because many hospitals have started charging ‘surge price’ or ‘peak charge’ from patients. This charge is applicable when more patients are admitted to the hospital or the operation theatres are busy. This trend is just like in the case of air tickets, where ticket prices also increase when the number of passengers increases. Just like booking a flight ticket earlier, you get a cheaper ticket, but at the last moment, you get an expensive ticket; the same is happening with hospital treatment.
What Does The Report Say?
According to the Economic Times, this new trend is emerging rapidly in the health sector. Hospitals are now charging an additional ‘surge charge’ due to increased busyness in the operating rooms. As the operating rooms fill up, the charge taken from the patients also increases. This puts an additional financial burden on the patients and creates a new challenge for health insurance companies.
Increased Cost Of Treatment
According to an official associated with health insurance, the cost of treatment is increasing year after year, and the inflation rate is 14% more than normal. Due to this ‘surge pricing’, the cost of treatment has increased by about 20%. Even routine procedures like laparoscopy or hysterectomy, which used to be normal earlier, are charged peak charges.
Hospitals have also started changing their treatment methods. For example, the angioplasty procedure was offered under a comprehensive package, in which both angiogram and stenting were bundled. But now, many hospitals have unbundled it, under which separate charges are being taken for angiograms and stenting. This is putting an additional burden on the patients, and it is becoming difficult for insurance companies to estimate the cost of treatment.
Increasing Pressure On Insurance Companies
These increasing expenses are also directly affecting insurance companies. Earlier, insurance companies used to prepare packages based on an estimated cost, but now, due to hospitals’ increasing ‘peak charge’, insurance companies cannot control the cost of treatment. This may also increase the insurance premium.
The new rules and charges adopted by hospitals are becoming a matter of concern for patients, as treatment costs have become more unpredictable than ever. This directly affects insurance companies’ plans and the overall cost of health services.
