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My fear is that if hospitals start to make their prices publicly available, it will drive prices upward not downward. Why? Because hospitals have no incentive
by Jorge1o1 8y ago
My fear is that if hospitals start to make their prices publicly available, it will drive prices upward not downward.
Why? Because hospitals have no incentive to compete on price. The majority of people get ambulance'd to the nearest hospital, not necessarily the cheapest one.
So any hospital that notices it's charging less than its competitors will raise its price, because, why not? It's a very inelastic demand.
- dragonwriter 8y ago> The majority of people get ambulance'd to the nearest hospital, not necessarily the cheapest one. But is ambulanced-in patients the majority of hospital business?
- Jorge1o1 8y agoI suppose it depends on the operation. You might find price competition in non-emergency operations, but price fixing in emergency operations.
- noelsusman 8y agoNo, not remotely. Scheduled surgeries are the lion's share of revenue at any hospital.
- DesiLurker 8y agothis is the kind of bogus reasoning lobbyists use to get congress pass BS anticompetetive laws. you do know that most people who get into ambulance are not unconscious, right?
- DoreenMichele 8y agoEr, and, most folks arrive by car. I'm pretty sure ambulance arrivals are a tiny percentage of their overall business. Opinion based on a. Being alive and b. Paying accident claims for 5+ years. Even with accidents, most claims did not involve an ambulance bill. In one memorable claim, a gunshot victim drove himself to the ER with multiple bullet wounds while bleeding profusely.
- rb808 8y agoAlso people compare quality on price. If you want important live-saving treatment would you choose the cheapest or most expensive?