You can find a lot of transparent medical costs, if you go to a private care clinic in "socialist" medical systems like in France or Italy. They can't compete with "free" medical care on price, so the private practices need to compete on quality and convenience.
So, stuck on a mountaintop was nowhere close to an appropriate description.
I would bet money that the parents of the unfortunate snakebitee were Democrats. They have an agenda and will waste no opportunity to destroy America's Health Care system... and turn it into...
Here in Quebec, like most of Canada, we pay nothing... except taxes. The high cost of healthcare is spread among the entire tax-paying population, so it _seems_ free. Actually the per capita cost is $8,500 CDN. That's probably a lot more than private health care insurance.
Finally, although our 'free' healthcare system may seem functional for those with medical emergencies, the waiting lists for non-critical operations and routine exams can me measured in years.
Another unasked question is whether it would be feasible for the camp to keep a couple of vials (with the cost included in the camp fees) that could be administered by a nurse. Assuming that a hospital visit would still be necessary, the overall outgoings would be considerably lower all around.
Pharma companies typically do not price drugs to recoup sunk costs. They price drugs to fund the next new drug. BTG Pharmaceuticals develops drugs that treat rare, emergent problems such as poisoning from other drugs (eg, digoxin) and exposure to high doses of radiation. As you say, thank God a company has developed such treatments.
I wonder if the hospital had antivenin sitting around. Perhaps--copperheads are not rare in Indiana. But perhaps not--many rarely used drugs can be obtained very quickly from wholesalers.
Air ambulances: I run in the Sierra Nevadas and other mountain areas. Air ambulance insurance is both cheap and essential. Rescue costs are $45-60,000. This isn't a hop from one hospital to another.
Drug price controls: Tom Sowell says always ask "and then what?" When no one can make a profit on a drug, the drug doesn't get made. Some vital meds --such as chemo drugs-- are in short supply, in part because the reimbursement for them is not profitable. Imagine that. 2nd and 3rd order consequences.
The FDA is a huge part of the cost problem although regulations also explain many other cost problems in the medical system. The FDA needs to be abolished or reformed. Reform would start with cutting its powers back to what it had until 1962. Another sensible reform would be to automatically approve a drug or medical device that has been approved by a comparable agency in developed countries.
Reducing the enormous costs imposed by the FDA's monopoly power would mean that you could shorten the period of patent protection and still enable pharma companies to make money. Economically, it makes no sense to have the same period of patent protection for different products (e.g. drugs vs. computer software).
A normal American business performs a service, and then produces a bill that it expects will be promptly paid without any arguments.
Hospitals are not normal businesses. After performing a service, they produce a statement that will be negotiated. The patients are terrified and angered by the obvious price-gouging in most of the initial statements.
If the patient has the smarts and self-confidence to go to the press, the bill will be minimized or even forgiven. If the patient can rouse their insurer into action, that too will save the patient financially.
How did this deeply stupid process become entrenched?
One culprit is the desire of insurers to get big discounts. Say that the accurate price of a medical procedure is $1,000. The insurer demands an 80% discount. But the hospital still needs the $1,000 revenue. So, the hospital raises the price to $5,000. After an 80% discount everyone is even.
In theory a single payer system could cut through all this waste. Maybe.
You can find a lot of transparent medical costs, if you go to a private care clinic in "socialist" medical systems like in France or Italy. They can't compete with "free" medical care on price, so the private practices need to compete on quality and convenience.
Thanks for another interesting article.
As a Canadian and Quebecer, I wanted to add the following: At no time did Mrs. Richardson seem to require the need for a helicopter. She was seen by staff at 3 hospitals. She fell on a beginners slope at one of the biggest ski resorts in Quebec. https://www.cbc.ca/news/entertainment/natasha-richardson-dies-after-quebec-skiing-accident-1.814244
So, stuck on a mountaintop was nowhere close to an appropriate description.
I would bet money that the parents of the unfortunate snakebitee were Democrats. They have an agenda and will waste no opportunity to destroy America's Health Care system... and turn it into...
Here in Quebec, like most of Canada, we pay nothing... except taxes. The high cost of healthcare is spread among the entire tax-paying population, so it _seems_ free. Actually the per capita cost is $8,500 CDN. That's probably a lot more than private health care insurance.
Finally, although our 'free' healthcare system may seem functional for those with medical emergencies, the waiting lists for non-critical operations and routine exams can me measured in years.
Another unasked question is whether it would be feasible for the camp to keep a couple of vials (with the cost included in the camp fees) that could be administered by a nurse. Assuming that a hospital visit would still be necessary, the overall outgoings would be considerably lower all around.
Enjoyable read--and a couple of points:
Pharma companies typically do not price drugs to recoup sunk costs. They price drugs to fund the next new drug. BTG Pharmaceuticals develops drugs that treat rare, emergent problems such as poisoning from other drugs (eg, digoxin) and exposure to high doses of radiation. As you say, thank God a company has developed such treatments.
I wonder if the hospital had antivenin sitting around. Perhaps--copperheads are not rare in Indiana. But perhaps not--many rarely used drugs can be obtained very quickly from wholesalers.
Air ambulances: I run in the Sierra Nevadas and other mountain areas. Air ambulance insurance is both cheap and essential. Rescue costs are $45-60,000. This isn't a hop from one hospital to another.
Drug price controls: Tom Sowell says always ask "and then what?" When no one can make a profit on a drug, the drug doesn't get made. Some vital meds --such as chemo drugs-- are in short supply, in part because the reimbursement for them is not profitable. Imagine that. 2nd and 3rd order consequences.
Thanks for the article.
Just to recap:
1) “Statements” are not bills.
2) “Charges” are not payment due. They usually contain a huge amount of markup and gobbledygook.
3) Payment is based on negotiated rates. No one pays the “price” of a car.
4) Nonprofit hospitals often greatly reduce or write off large amounts due — especially for children. They consider it charity care.
The FDA is a huge part of the cost problem although regulations also explain many other cost problems in the medical system. The FDA needs to be abolished or reformed. Reform would start with cutting its powers back to what it had until 1962. Another sensible reform would be to automatically approve a drug or medical device that has been approved by a comparable agency in developed countries.
Reducing the enormous costs imposed by the FDA's monopoly power would mean that you could shorten the period of patent protection and still enable pharma companies to make money. Economically, it makes no sense to have the same period of patent protection for different products (e.g. drugs vs. computer software).
A normal American business performs a service, and then produces a bill that it expects will be promptly paid without any arguments.
Hospitals are not normal businesses. After performing a service, they produce a statement that will be negotiated. The patients are terrified and angered by the obvious price-gouging in most of the initial statements.
If the patient has the smarts and self-confidence to go to the press, the bill will be minimized or even forgiven. If the patient can rouse their insurer into action, that too will save the patient financially.
How did this deeply stupid process become entrenched?
One culprit is the desire of insurers to get big discounts. Say that the accurate price of a medical procedure is $1,000. The insurer demands an 80% discount. But the hospital still needs the $1,000 revenue. So, the hospital raises the price to $5,000. After an 80% discount everyone is even.
In theory a single payer system could cut through all this waste. Maybe.
Ah, but the glass-half-full story never airs. Except the one about socialism, where the glass doesn’t really need *anything* in it.