PODCAST: both sides of price transparency | bluenotes

Transparency around healthcare pricing in the form of comparison services in Australia could have the unintentional effect of leading to higher prices, according to an academic and expert in the sector.

Speaking to bluenotes on podcast, Professor Anthony Scott of The University of Melbourne said there was no straightforward solution to the issue.

“Transparency is good – but will consumers use it?” – Professor Scott

“For example, in petrol markets, there’s a [price-comparison] website but not many consumers actually use that website,” he said. “The people who use the website are providers – and therefore they’ve got better information on the prices of their competitors now.”

“Prices may rise just because there’s more information out there. Typically we’ve got to think transparency is good, but will consumers use that information? The evidence in many industries is they actually don’t use it very much.”

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PODCAST: both sides of price transparency.