Reference-based pricing: 4 steps to successful implementation

Is reference-based pricing the future of the health care industry? There are too many fluctuating variables currently in play to say for sure, but one thing is certain: it has a lot of appeal. “To me, being a financial guy, it made sense,” says Mark Gitter, chief financial officer for San Antonio-based GVTC Communications, which hopped on the RBP bandwagon in 2015. “I just want to pay fair market value for the services I get.”

More companies are taking note of the RBP model, which has been around for years, but only recently has seen increased viability and appeal. “It wasn’t until organizations decided they were going to absorb financial and legal responsibility for this balance-billing piece that it made it a real option,” says John Simmons, founder and president of StrataBen, and a benefits consultant that helped connect GVTC with Advanced Medical Pricing Solutions (AMPS), one of the first of a growing number of RBP service providers. “Those intersected at the perfect time.”