Only in the world of medicine would Dr. Vivian Lees question have seemed radical. She wanted to know: What do the goods and services provided by the hospital system where she is chief executive actually cost?
Most businesses know the cost of everything that goes into producing what they sell essential information for setting prices. Medicine is different. Hospitals know what they are paid by insurers, but it bears little relationship to their costs.
No one on Dr. Lees staff at the University of Utah Health Care could say what a minute in an M.R.I. machine or an hour in the operating room actually costs. They chuckled when she asked.
But now, thanks to a project Dr. Lee set in motion after that initial query several years ago, the hospital is getting answers, information that is not only saving money but also improving care.
President Obama visited Nashville this week to urge consumers to put pressure on state insurance regulators to scrutinize proposed rate increases…
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