Wide variations in health costs should come as no surprise. In fact, a recent report from Health Affairs found that nationally, the cost of having a baby ranges from $1,189 to $11,986. In Denver, prices range from $4,471 to as much as $16,094 according to our partners at Healthcare Bluebook.

Within that price, hospital facility fees vary by over 360%. So why do hospital costs vary so much? The Health Affairs report found that:

• Facility costs were the highest at hospitals with lower proportions of childbirths covered by Medicaid (the opposite of what we might expect).
• Costs were also higher at hospitals with lower volumes of childbirths (exactly what we would expect).
• Nonprofit hospitals had the higher prices overall.

Facilities with higher rates of maternal death and cesarean delivery tended to have higher estimated costs. That runs contrary to the belief that spending more leads to improved outcomes.

At CBGH, we know that high cost does not always mean high quality. One hospital might be great at cardiac care but rank near the bottom on orthopedic care. Which explains our reservations about exclusive networks.

The bottom line is that shopping for specific services such as deliveries or joint replacements trumps shopping for exclusive networks every time.

If you want to learn more about cost variations, email us at [email protected] or call us at 303-922-0929.