Relative Price and Provider Price Variation

CHIA reports annually on relative price to examine provider price variation in the Massachusetts commercial market. Relative Price (RP) facilitates comparison of average provider prices, accounting for differences in patient acuity, the types of services providers deliver to patients, and the different insurance product types that payers offer to their members.

CHIA calculates both payer-specific RP, which enables comparison within a payer’s network, and cross-payer statewide relative price (S-RP), which enables comparison across commercial payers.

New for the May 2019 report, CHIA presents relative price information in a series of interactive graphics. If you are unfamiliar with using a Tableau interface, please watch this video.

Key Findings

• In 2017, $9.6 billion was paid to acute care hospitals in Massachusetts for inpatient and outpatient services provided to patients with commercial insurance plans.
  
  

   

• Academic Medical Centers received the largest amount of commercial payments statewide at 39.5%, while teaching hospitals received the lowest at 12.1%.
  
  

   

• In 2016, $5.1 billion was paid to physician groups for services provided to patients with commercial insurance plans

Provider Price Variation in the Massachusetts Commercial Market Interactive Graphic (Updated May 2019)

Updated June 26, 2019