SC ranks near the bottom of new healthcare cost to quality index: Phia Group

South Carolina ranked 48th in a new state-by-state healthcare quality and cost analysis index published by the Phia Group. (Logo provided)

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(WCIV) — South Carolina ranked 48th in a new state-by-state healthcare quality and cost analysis index published by the Phia Group.

The Massachusetts-based health care cost containment firm ranked states based on the quality of care available compared to the billing rates employed in each state. Maryland regulates hospital payments differently than other states and for this, was excluded from the final rankings.

South Carolina’s ranking second from the bottom of the list indicates the state has more aggressive, unpredictable billing rates than other states compared to the quality of care available. The Phia Group said their analysis highlights the “opaque healthcare system across the United States.”

“When it comes to the cost of healthcare, there’s a terrible misconception that more expensive services correlate with better quality and more optimal outcomes,” said Adam V. Russo, co-founder and CEO of the Phia Group. “There may be such a correlation between cost and quality with cars and electronic products, but that is far from the case in healthcare.”

David Ostrowsky, corporate communications manager for the Phia Group, writes that while consumers might expect a high price tag on a vehicle to correlate with increased performance, the idea that price and quality run parallel to one another “isn’t grounded in reality” due to the lack of transparency in the industry regarding price and quality metrics of healthcare services.

Unlike other aspects of the American economy, Russo explained that healthcare is not driven by consumerism, resulting in less transparency when it comes to estimating medical bill costs. He continued:

People actually have no idea what anything actually costs as it relates to medical treatment. Many Americans would be surprised to learn that there’s actually quite a bit of information available – if you know how to access it – that indicates how quality and pricing metrics align. Unfortunately, the general public can find more information about the quality and price of a toothpick than the quality and price of the open-heart surgery they just scheduled.

To lower healthcare costs and ensure high quality outcomes, the Phia Group said that more engaged consumerism paired with pricing and quality transparency is key.

“The price charged for a normal delivery of a baby should not range from $10,000 to $60,000 in any given market,” said Russo. “But since no actual patient is paying the entire bill, the transparency is lost, and patients only look at what their co-pays and deductibles are – not the entire price. Hence, we get more expensive healthcare every year.”

Minnesota topped the list as the state with the most affordable high-quality healthcare, according to the index. No Southern states were included in the top 10, with seven landing in the bottom 10, including South Carolina.

For more information on the Phia Group’s analysis, click here.

See the full state-by-state rankings below: