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While some parts of healthcare - like drugs - can be seen as commodity, a lot of it is not. Service differs significantly from doctor to doctor. Not disclosing

by smsm42 5y ago

While some parts of healthcare - like drugs - can be seen as commodity, a lot of it is not. Service differs significantly from doctor to doctor. Not disclosing the prices makes it easier for the providers to have higher prices but it doesn't make the service in question a commodity.

alfalfasprout 5y ago
While surgery may not be a commodity, the same mechanisms of price discovery lowering prices across the board apply. Even if a surgeon is more skilled, are they worth 3x the cost?
- HWR_14 5y ago
  A surgeon can easily be worth 3x the cost. Some surgeries have a significant risk of death, for instance. Or a low chance of success. Both of those factors may change dramatically with surgeon skill. And those are no brainless. A more skilled surgeon on cosmetic surgery with lower recovery times and or prettier work could easily command a premium because their supply is so low and rich enough people have huge demand.
e4e78a06 5y ago
Definitely, but if I'm comparing primary care providers in the same area between Kaiser and Hoag and Sutter or other large chains there isn't going to be much difference in service between the pool of available doctors at each one. Or even routine specialists for non-critical stuff like dermatology, you don't get any better care by going with the best. Where it matters is cutting edge, critical care like cardiology, oncology, and surgery where methods aren't standardized and individual skill (as opposed to drug innovation) plays a large role in outcomes.
throwawaygh 5y ago
I'd guess most healthcare services are more like a commodity than not. (Also, to the extent that there is important variation in quality of service, it's probably the nursing staff that matters for the vast majority of services. I can't remember the last time I interacted with an actual MD for more than a few useless minutes.)

by smsm42 5y ago

alfalfasprout 5y ago

While surgery may not be a commodity, the same mechanisms of price discovery lowering prices across the board apply. Even if a surgeon is more skilled, are they worth 3x the cost?

HWR_14 5y ago
A surgeon can easily be worth 3x the cost. Some surgeries have a significant risk of death, for instance. Or a low chance of success. Both of those factors may change dramatically with surgeon skill. And those are no brainless. A more skilled surgeon on cosmetic surgery with lower recovery times and or prettier work could easily command a premium because their supply is so low and rich enough people have huge demand.

e4e78a06 5y ago

Definitely, but if I'm comparing primary care providers in the same area between Kaiser and Hoag and Sutter or other large chains there isn't going to be much difference in service between the pool of available doctors at each one. Or even routine specialists for non-critical stuff like dermatology, you don't get any better care by going with the best. Where it matters is cutting edge, critical care like cardiology, oncology, and surgery where methods aren't standardized and individual skill (as opposed to drug innovation) plays a large role in outcomes.

throwawaygh 5y ago

I'd guess most healthcare services are more like a commodity than not. (Also, to the extent that there is important variation in quality of service, it's probably the nursing staff that matters for the vast majority of services. I can't remember the last time I interacted with an actual MD for more than a few useless minutes.)