Regulations limit profit. Profits are limited to cost + profit (as a percentage). The workaround is to make the cost so high that profits are also high. Charge

Regulations limit profit. Profits are limited to cost + profit (as a percentage). The workaround is to make the cost so high that profits are also high. Charge $1400 for a band-aid, insurance negotiated discount of some arbitrary number (say, $1200), on the hook for $200 deductible. It is a nexus between all the players in the industry to keep costs high. Same thing plays out with utilities, they are given a monopoly with guaranteed percentage of profit. They are incentivized to spend a lot of money. If these regulations were lifted, utilities would incentivize demand shifting instead of building more and more natural gas peaker plants. Warren Buffet owns many utilities, he invests in things that are monopolies, guaranteed to extract rents forever. https://www.boredpanda.com/absurd-medical-bill-bernie-sanders/ https://www.boredpanda.com/absurd-medical-bill-bernie-sander... https://www.vox.com/2016/5/13/11606760/emergency-facility-fees-american-health-care https://www.vox.com/2016/5/13/11606760/emergency-facility-fe...