What to do next
Show the working, step by step
Where I used this
At Praava Health, where most patients paid out of pocket, we rebuilt referral and pricing around transparent economics instead of hidden kickbacks, and lab margins moved from about 30% to 50%. A clear cash price was part of the product, not a back-office number.
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How to post a cash price people trust
- One price, before the visit. A number on the website or at the desk beats an estimate after the bill. Surprise is what patients remember.
- Price the common path, not the exception. Bundle what most patients need, such as a visit with standard labs, and price extras separately.
- Cover your real cost. Include card fees and the bills that never get paid. A cash price below cost is a donation, not a strategy.
- Compare with the deductible, not the copay. Until the deductible is met, an insured patient pays the full billed rate, so your cash price competes with that.
Bangladesh priced this way first
In Bangladesh about 79% of health spending comes straight from patients, so almost every price is a cash price and patients compare before they come. In the US, marketplace deductibles averaged $3,786 in 2026, which turns millions of insured patients into cash buyers for ordinary care. The discipline is the same: a clear price, honest value and a reason to come back. More in The ACA cliff turned patients into cash buyers.
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Setting cash prices for a clinic, lab or service line?
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Questions
How do you set a cash price for a medical service?
Start from what the service costs you to deliver, add your target margin and the cost of collecting payment, then compare the result with what an insured patient would be billed and with local cash prices. Cash price = cost divided by (1 minus target margin minus payment cost).
Why are cash prices often lower than insured prices?
Billed insurance rates carry claims administration, delayed payment and negotiated discounts. A cash price paid at the visit avoids most of that, so a clinic can charge less and still keep a healthy margin.
Should a clinic publish its cash prices?
For the services most patients use, yes. Patients with high deductibles compare prices before they book, and a clear posted price wins the visit and avoids the surprise bills that lose patients for good.