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You could only go for the $500 MRI if someone gave you the choice though. If the market will bear a $1500 MRI the two or three hospitals you might have a choice
by Avshalom 11y ago
You could only go for the $500 MRI if someone gave you the choice though. If the market will bear a $1500 MRI the two or three hospitals you might have a choice between don't have any real incentive to lower prices. Neither hospital is likely to believe there's a huge untapped market for MRIs that will make up for the loss of profit and an extra $1000 per MRI of profit means they'd have to at least quadruple their volume to make up for the smaller margin.
- refurb 11y agoI think the point is that there are already hospitals that have those kind of price differentials. Most expensive brain MRI is $5,560. Least expensive $218. Both in NYC. Most people can access out of network providers. If you're paying 10% in-network, the $5,560 MRI is $556. If you're paying 50% out-of-network, the $218 MRI is $109. The problem is price transparency and aligned incentives to take advantage of different prices.