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You're missing the point. Gas is priced competitively in areas where there are no alternatives to its purchase. This is possible because there are lots of peo

You're missing the point. Gas is priced competitively in areas where there are no alternatives to its purchase. This is possible because there are lots of people who compete to supply gas. Basic econ 101. With hospitals, you have one local monopoly to choose from. Therefore you get monopoly pricing. Yes, if you're shot, you're not going to be too choosy about where the ambulance takes you. But most medical emergencies have some lead up to diagnosis and some wait time for the actual operation. Even cancer is not treated immediately. You schedule an appointment to have it treated over a long period of time. Now with all this time, you theoretically have the ability to compare suppliers. But in our world, there is one regional monopoly providing care. THAT ISN'T THE ONLY REASON CARE IS EXPENSIVE. But it is a factor worth talking about and considering.

eesmith 9y ago
You wrote: "But most medical emergencies have some lead up to diagnosis and some wait time for the actual operation. ... Now with all this time, you theoretically have the ability to compare suppliers. But in our world, there is one regional monopoly providing care." Even when there is more than source of care and when there is plenty of time and the person is interesting in comparison shopping, in practice that is still difficult to do in the US. Last year there was a piece by Johnny Harris at Vox titled "I tried to find out how much my son's birth would cost. No one would tell me." https://www.vox.com/2016/5/5/11591592/birth-cost-hospital-bills https://www.vox.com/2016/5/5/11591592/birth-cost-hospital-bi... Childbirth is the #1 reason why people go to the hospital. If the price estimate isn't available for an average/low-risk birth, then it's not going to be available for other procedures. And again, this includes areas where there are multiple hospitals which provide maternity services, so your explanation of "local monopoly" isn't enough. (Quoting https://www.womenshealthmag.com/mom/costs-of-giving-birth https://www.womenshealthmag.com/mom/costs-of-giving-birth : "this charging system often results in "wildly inflated" costs, and they can vary from hospital to hospital—even if you're just looking at ones in the same neighborhood.") Your "basic econ 101" quip doesn't go very far to explain why it is that the governmental organizations which regulate these hospitals aren't, you know, regulating them to prevent such "basic econ 101" problems. What's the point of giving them a local monopoly if they are going to abuse it?
- rukittenme 9y ago
  > What's the point of giving them a local monopoly if they are going to abuse it? Exactly. We need to be rid of it. > Your "basic econ 101" quip doesn't go very far to explain why it is that the governmental organizations which regulate these hospitals aren't, you know, regulating them to prevent such "basic econ 101" problems. My quip was directed at gas prices exclusively. I don't have an explanation as to why the government does what is does. It seems to me it does everything in its power to make things worse. That's why I'd like to see less government in this industry. > Even when there is more than source of care and when there is plenty of time and the person is interesting in comparison shopping, in practice that is still difficult to do in the US. This is true for some cases and false for others. In the cases its true, I believe its at least partially due to the fact that these hospitals have huge amounts of market power. Whether thats monopolistic or oligopolistic market power I leave to your judgement. But it undoubtedly plays a part. https://www.ftc.gov/system/files/documents/public_statements/896453/1512fall15-ohlhausenc.pdf https://www.ftc.gov/system/files/documents/public_statements... In the cases its false: wellness, vision, dental, ENT. Practices are very upfront about their costs. Even though these might entail shooting lasers into a person's eyes or putting a person under general anesthesia. Why is it that I can call any dental office in America and immediately get a quote on a procedure but I can't call one of the two hospitals in my area and get a single price on anything at all? I ask that genuinely. Why the difference? There are areas of the healthcare industry where its trivial and areas where its impossible to know.

eesmith 9y ago

You wrote: "But most medical emergencies have some lead up to diagnosis and some wait time for the actual operation. ... Now with all this time, you theoretically have the ability to compare suppliers. But in our world, there is one regional monopoly providing care." Even when there is more than source of care and when there is plenty of time and the person is interesting in comparison shopping, in practice that is still difficult to do in the US. Last year there was a piece by Johnny Harris at Vox titled "I tried to find out how much my son's birth would cost. No one would tell me." https://www.vox.com/2016/5/5/11591592/birth-cost-hospital-bills https://www.vox.com/2016/5/5/11591592/birth-cost-hospital-bi... Childbirth is the #1 reason why people go to the hospital. If the price estimate isn't available for an average/low-risk birth, then it's not going to be available for other procedures. And again, this includes areas where there are multiple hospitals which provide maternity services, so your explanation of "local monopoly" isn't enough. (Quoting https://www.womenshealthmag.com/mom/costs-of-giving-birth https://www.womenshealthmag.com/mom/costs-of-giving-birth : "this charging system often results in "wildly inflated" costs, and they can vary from hospital to hospital—even if you're just looking at ones in the same neighborhood.") Your "basic econ 101" quip doesn't go very far to explain why it is that the governmental organizations which regulate these hospitals aren't, you know, regulating them to prevent such "basic econ 101" problems. What's the point of giving them a local monopoly if they are going to abuse it?

rukittenme 9y ago
> What's the point of giving them a local monopoly if they are going to abuse it? Exactly. We need to be rid of it. > Your "basic econ 101" quip doesn't go very far to explain why it is that the governmental organizations which regulate these hospitals aren't, you know, regulating them to prevent such "basic econ 101" problems. My quip was directed at gas prices exclusively. I don't have an explanation as to why the government does what is does. It seems to me it does everything in its power to make things worse. That's why I'd like to see less government in this industry. > Even when there is more than source of care and when there is plenty of time and the person is interesting in comparison shopping, in practice that is still difficult to do in the US. This is true for some cases and false for others. In the cases its true, I believe its at least partially due to the fact that these hospitals have huge amounts of market power. Whether thats monopolistic or oligopolistic market power I leave to your judgement. But it undoubtedly plays a part. https://www.ftc.gov/system/files/documents/public_statements/896453/1512fall15-ohlhausenc.pdf https://www.ftc.gov/system/files/documents/public_statements... In the cases its false: wellness, vision, dental, ENT. Practices are very upfront about their costs. Even though these might entail shooting lasers into a person's eyes or putting a person under general anesthesia. Why is it that I can call any dental office in America and immediately get a quote on a procedure but I can't call one of the two hospitals in my area and get a single price on anything at all? I ask that genuinely. Why the difference? There are areas of the healthcare industry where its trivial and areas where its impossible to know.