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Hospital creates bidding war by posting pricing online

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Re: Hospital creates bidding war by posting pricing online

#11

Post by Scaevolus »

toomuchtodo wrote: post #6
HarryHirsch wrote: post #3

This happens only now ? In more civilized countries like Germany, prices for procedures have been set since time immorial. There is a provision for surcharges from the physician, but these aren't common, and the physician will have to have a good cause or the insurer will not pay it. Same thing for new medications: they are not permitted in the clinic unless there is a genuine advantage for the patient. All this is o…

All this is of course due to political circumstances: medicine is just too profitable. No. Medicine in inelastic. There is no such thing as a rational demand side, as you don't get to choose if you need healthcare or not. When demand is inelastic, and supply is limited, prices will rise accordingly with no relief in sight. The solution? Either set market prices (at the cost of stifling supply) or flood the market wit…

Aggregate essentials (food, shelter) are generally inelastic. You don't choose if you need food or not. Being able to select what food you buy (based on price, etc) forces the prices to be competitive.

Not being able to select healthcare based on price means nothing checks rising prices. Regulations have made healthcare into a cartel where members won't compete to be affordable.

Re: Hospital creates bidding war by posting pricing online

#12

Post by stephengillie »

HarryHirsch wrote: post #3

This happens only now ? In more civilized countries like Germany, prices for procedures have been set since time immorial. There is a provision for surcharges from the physician, but these aren't common, and the physician will have to have a good cause or the insurer will not pay it. Same thing for new medications: they are not permitted in the clinic unless there is a genuine advantage for the patient. All this is o…

If a person in Germany without insurance goes to a hospital emergency room for treatment, who pays for it?

Re: Hospital creates bidding war by posting pricing online

#14

Post by ambiate »

I dream of a day when I can walk into an area which offers 'services' and be offered a pricing chart. From hospitals, banks, loan officers, home loans, cars, etc.

A cryptic itemized list, such as a mortgage's Good Faith Estimate (GFE), which falls short of describing the items in the list still fails my test.

This hope is not for me. Its for the misfortunate who run on impulse and have weak mathematical logic. Many people will nod their heads when you mention simple/compound interest or amortization. They will easily dig themselves into holes and take on the realization far too late in the game.

Another favorite which gets thrown in the air: 'Purchase this warranty.' Countless friends and family have worried that their purchase or lack of warranty was a mistake. Asking about said warranty usually results in: 'read the small text in the agreement.' Typically, walking away from the situation completely misinformed by a seller.

As I prepare to move out of my apartment, I received an itemized list (hidden among a contract and various other documentation) which in total amounted to $11,500 in charges for potential neglect in leaving the apartment. Simple things on the list: patch holes ($80/hole), steam clean carpet with receipt ($500/room), replace drip pan ($200), etc. Nothing warns you of the potential threat.

Re: Hospital creates bidding war by posting pricing online

#16

Post by eloisius »

pdx wrote: post #2

They have avoided government regulation and control in that area by choosing not to accept Medicaid or Medicare payments. I don't understand how the government itself is causing lack of price transparency, but this should be addressed by any president or congressman who imagines he's going to do something about healthcare costs. If you don't have price transparency, you have no chance at cost cutting.

Prices get equalized at Medica{re,id} prices for the procedure. Those get set by a large conference of physicians and bureaucrats. In most other markets, we'd call it price fixing.

Re: Hospital creates bidding war by posting pricing online

#18

Post by abstractbill »

Scaevolus wrote: post #11
toomuchtodo wrote: post #6

Earlier quoted context omitted.

All this is of course due to political circumstances: medicine is just too profitable. No. Medicine in inelastic. There is no such thing as a rational demand side, as you don't get to choose if you need healthcare or not. When demand is inelastic, and supply is limited, prices will rise accordingly with no relief in sight. The solution? Either set market prices (at the cost of stifling supply) or flood the market wit…

Aggregate essentials (food, shelter) are generally inelastic. You don't choose if you need food or not. Being able to select what food you buy (based on price, etc) forces the prices to be competitive. Not being able to select healthcare based on price means nothing checks rising prices. Regulations have made healthcare into a cartel where members won't compete to be affordable.

Aggregate essentials (food, shelter) are generally inelastic. You don't choose if you need food or not.

Right. And there were a lot of famines in the past. It's only by "flood[ing] the market with supply (using technology to both drive down costs and replace what people do)" that we've managed (in the West, at least) to ensure that most people no longer have to worry about food.

Re: Hospital creates bidding war by posting pricing online

#20

Post by djKianoosh »

Similarly, at least to me, Birthing Centers are offering a much lower cost alternative to the whole delivery process at hospitals. From experience, the price difference can be 10:1 which is just insane. 10 being what is billed to insurance, 1 what you'd pay directly. Still, comparing apples to apples, it's 3:1. Again, from recent experience.

Bottom line, hospitals are big business and they can get away with billing insurance for a ton... and many times the extra "care" is unnecessary.

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