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> Should there be surge pricing in, IDK, healthcare? There are no "shoulds" in life – if you want to offer healthcare services under a surge model, go nuts – b
by randomdata 3y ago
> Should there be surge pricing in, IDK, healthcare?
There are no "shoulds" in life – if you want to offer healthcare services under a surge model, go nuts – but it is unlikely that surge pricing would be beneficial in healthcare. Surge pricing meant to incentivize shifting some activity to another time of day.
Routine healthcare needs are generally already scheduled by appointment to ensure appropriate distribution. As such, there are no surges. Unexpected healthcare needs may encounter surges, but as they are not expected, a higher price doesn't alter incentives. Nobody wants to have unexpected healthcare needs in the first place. They aren't thinking "You know, a hospital visit is cheaper at 11AM. That's when I'll choose to break my arm!" Without that, you don't gain anything with surge pricing.
But someone thinking "You know, lunch is cheaper at 11AM. That's when I'm going to start eating lunch!" is quite realistic and beneficial to the restaurant. And, indeed, surge pricing is nothing new for restaurants for exactly that reason. Of course, traditionally, they have called it "happy hour" rather than "surge pricing", but the idea is the same.
- fragmede 3y agoif we define surge pricing as being incentivized to shift activity to another time, then arguably it's already there for Americans. If I call 911 and take an ambulance to the ER, it's gonna cost me way more out of pocket just to get there even before I see a doctor. If I schedule an appointment and see my PCP in a couple of weeks, all I pay is there deductible. So I'm incentivized not to go to the ER for some minor thing that can wait until I can get to the cheaper urgent care in the morning, or my PCP in a week or two. The math for happy hour looks like a similar thing, but it's not, because alcohol. drunk people do dumb things and one of those things is not leave and spend money and be entertaining, among other things.
- randomdata 3y agoA tool's purpose not define the tool.