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> One is to have a price to treat a condition, e.g. a hospital can charge $X for a pregnancy, regardless of whether it’s a C-section or a vaginal birth The sid
by coffeemug 8y ago
> One is to have a price to treat a condition, e.g. a hospital can charge $X for a pregnancy, regardless of whether it’s a C-section or a vaginal birth
The side effect of such a policy is that hospitals will then have huge incentives to perform the cheaper procedure. E.g. if the real price of C-section is higher than the real price of vaginal birth, but the effective price for both is mandated by the government, then hospitals will have too much pressure not to perform C-sections (even when they'd result in better outcomes for the patient).