CHARLOTTE, N.C. — A new federal database breaks down the average charges and average Medicare payments for the top 100 inpatient procedures at hospitals across the country, adding a new level of transparency to health care.
"It's awesome. That's the way every other business in the world works, where you can compare and contrast prices," said Charlotte resident Darren Ashe.
Channel 9 compared costs for a few procedures at Carolinas Medical Center and Novant Health Presbyterian in Charlotte.
According to the database, the average charge for chest pains at CMC-Main is $15,673. It's $10,703 at Novant-Presbyterian.
The average rate for a major small and large bowel procedure is $143,676 at CMC and $92,451 at Presbyterian.
[ To check out the database, click here. ]
Federal health officials said it's a mystery why hospitals in the same city charge vastly different rates and add you may not necessarily pay what's in the database.
Medicare Deputy administrator Jonathan Blum said Medicare pays hospitals on its own fee schedule that is not based on the listed charges and insurance companies routinely negotiate discounted rates with hospitals.
Those who don't have insurance could be billed the full amount.
Federal officials also said higher charges don't reflect better care.
"I think the transparency is good because I wouldn't want to assume why one is different than the other because there might be some things that I'm not aware of that could justify and increase or decrease from one hospital over the another," Charlotte resident Stephen Smith said.
Channel 9 reached out to CMC and Novant Health Presbyterian about the difference in charges.
In a statement, Novant Health Presbyterian said, "Charges are linked, in part, to many federal regulations and not an expectation of what a hospital will be paid for its services. Moreover charges reflect the different levels of care a patient may need for a given condition."
While the database may open up hospitals to scrutiny, a member of the Obama administration hopes the transparency will lead to competition that will drive down costs.
Carolinas Medical Center sent a statement that said, "Carolinas HealthCare System understands that healthcare pricing and financing is complex and difficult to understand; comparisons between hospitals, even for like procedures, can be potentially misleading. Carolinas HealthCare System is currently working on shared guidelines with other providers in the state to provide greater transparency and meaningful information for our patients and the communities we serve."