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Annual price increase

30 Oct 2016

By: Jennifer Fowler, director of finance

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Salem Health Hospitals and Clinics values transparency, so we want to tell you about increases in the rates Salem Health charges insurers and patients effective Oct. 1, 2016.

Every year, like most health care organizations we adjust prices to keep up with inflation and maintain market competitiveness. This process considers the rising costs of health care, fee schedule changes from CMS and what other similar health systems in the region are charging.

In the past, Salem has adjusted prices across the board. Taking all the data (inflation, CMS fee schedules, regional pricing) into consideration, a percentage increase would be applied to all areas.
This year and last year, we have taken a slightly different approach. Instead of a generic 6 percent increase regardless of service area, we looked at each area and adjusted as appropriate to more accurately reflect the market.

This fine-tuning approach will net Salem Health a little less revenue than an across the board increase, but we believe it is a more accurate reflection of what the fair cost of services should be, while still allowing the organization to continue fulfilling its mission. Also remember that we provide several options to help financially qualified patients with their health care bills.