3 ms·
Any business that can afford to splice, destructure, and recompose their pricing into undecipherable mess is a strong sign they're doing too well, and have an u
by yason 8y ago
Any business that can afford to splice, destructure, and recompose their pricing into undecipherable mess is a strong sign they're doing too well, and have an unhealthy stronghold on their customers.
If the markets are free enough I'd imagine some hospitals coming up with reasonable price lists that amortise the variance between successive operations and between the hospital and the patient. Most calls are routine anyway.
Even car repair shops are able to quote rough price ranges even if they face a lot of unknowns. They will call you back if they find something else, and at least locally should the mechanic commit to a fixed offer he's only allowed to deviate from it by X percent. And routine jobs are generally advertised with fixed prices. The shops will undoubtedly swallow some of the accidental costs themselves to provide tighter quotes which is what customers like.
Surely treating a human patient is more involved than that but the mechanism for pricing doesn't need to be. The hospital can calculate how much extra they need to add in the fixed prices to be able to "insure themselves" against the rare pathological case, to some extent. There's always the route of escalation from a routine operation to operating an acute trauma, but I can't imagine that would be common enough to explain the inability to provide reasonable quote ranges.
- viggity 8y ago"splice, destructure, and recompose" - this gives the impression that they're making complicated on purpose. In this regard you're giving them way, way too much credit. I can practically guarantee they're just dumping a report (or more likely a union of several reports). It is a giant bureaucracy that has had zero price pressure to force them to simplify. It is a function of 30 years of new inventions, complicated laws and IT as an afterthought. It akin to asking the IRS exactly how many taxable transactions exist. They have no effin' idea. They'll just push the 74,000 pages of the tax code at you and say "you figure it out"
- conanbatt 8y agoI agree. You do have players like Kaiser that show success on vertical integrations, but that is a slow business. The core key to achieve this is to separate insurance from the employer, and make health services truly compete with each other. Most people would probably end up with High deductible plans, and they will be very price sensitive to basic care costs.