Delivering Health
Hospitals: More Expensive, Same Middling Quality
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  • Boritz

    …one area where price and quality are totally uncorrelated…
    Then it would be smart to shop around and pick the absolute lowest price you can find. A bidding process is not usually this straight-forward. Take advantage.

    • Andrew Allison

      In order to do that, the ranking of hospitals on the cost scale would need to be published. Good luck with that! But determining whether the hospital is part of an ACO might not be a bad criterion. As WRM has repeatedly pointed out, transparency is the only way we’re going to separate the bulls and bears from the hogs.

      • Bruce

        Not to make excuses, the system is broken beyond repair. But the “expensive” hospitals probably get the sicker, more complicated patients. In general, we need to start all over with the way healthcare is administered and paid for. As Andrew says, “Good luck with that.”

  • Jacksonian_Libertarian

    Without the “Feedback of Competition” providing an existential threat, the healthcare system will never provide the continuous forced improvements in Quality, Service, and Price that free markets give us. The ACO’s are weak tea that offer 1/2 a Carrot and that only for price reductions which means, Quality, and Service, are going to be sacrificed to get lower prices, and no Stick at all. Free Markets on the other hand offer 100% of the Carrot, and value Quality, Service, and Price as their customers do, and 100% of the Stick of “Bankruptcy” and everyone losing their jobs.

    For an example of how the “Feedback of Competition” would work in the healthcare system, you need look no further than Lasik eye surgery which isn’t covered by insurance. This medical field has developed in just a couple of decades from Radial Keratotomy surgery to an outpatient precision laser surgery with an Advertised price of $299 per eye, or about the cost of a pair of high end designer prescription glasses. That’s the kind of healthcare system we deserve, not this socialist quality, service, and price.

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