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They have low profit margins, but they massively overpay for the care, meaning that it's still incredibly inefficient.
by nicoburns 4y ago
They have low profit margins, but they massively overpay for the care, meaning that it's still incredibly inefficient.
- lotsofpulp 4y agoHow are you determining they massively overpay for the care?
- nicoburns 4y agoBy comparing to the prices paid for comparable care in other countries. And also by comparing what US hospitals charge insurers vs what US hospitals charge cash payers.
- lotsofpulp 4y agoOverpay means getting being able to get a better deal than you did. If it is 1 hospital in a 100 mile radius telling an insurance company to take it or leave it, how is it overpaying? Prices paid in other countries are irrelevant due to numerous factors, such as cost of living, purchasing power of local currency, legal liabilities, and most important, whether or not it is taxpayer funded healthcare which means all sellers are dealing with 1 buyer, which is the nearly the exact opposite of the US, where it is all buyers dealing with 1 seller (hospital or drug manufacturer who owns the patent).