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Markets and heathcare
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Quote:Health-care analyst Steve van Kuiken of McKinsey points out that 60% of all health care costs are “unshoppable,” which means patients don’t have a realistic way of comparing prices or quality, in order to get the best deal. You can’t price-shop in the emergency room, for example, or request a less expensive IV bag. “It has not been a consumer-oriented industry at all,” van Kuiken said at the summit. “Accessing the health care system is extremely hard.”
Why health care costs may never go down
- Rife with market failures..
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02-17-2020, 03:50 AM
(This post was last modified: 02-17-2020, 03:58 AM by Admin.)
Quote:Forty years ago, when many insurers were nonprofit entities and being a doctor wasn’t seen as a particularly good entree into the 1 percent, billed rates were far lower than they are today, and insurers mostly just paid them. Premiums were low or paid by an employer. Patients paid little or nothing in co-payments or deductibles.
That’s when a more entrepreneurial streak kicked in. Think about the opportunities: If someone is paying you whatever you ask, why not ask for more?
Opinion | Who’s Profiting From Your Outrageous Medical Bills? - The New York Times
- Business logic doesn't necessarily improve things when there are obvious market failures..
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