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Bigger installed base => more capital costs to be paid for. Trying to roll down medical costs to one- or two-line sentences is really dangerous with the US hea
by danielweber 14y ago
Bigger installed base => more capital costs to be paid for.
Trying to roll down medical costs to one- or two-line sentences is really dangerous with the US health care system, because so many things you could normally expect in a functioning economy aren't there.
In fact, increased access to medical devices and procedures may drive costs up with no change in patient outcomes. This was a pretty well-discussed article in economics circles a few years ago that talks about the phenomenon: http://www.newyorker.com/reporting/2009/06/01/090601fa_fact_gawande http://www.newyorker.com/reporting/2009/06/01/090601fa_fact_...
We do get something for our expensive MRI machines (lower wait times), but I doubt anyone, or even the invisible hand of the market, decided it was a good trade-off. It just happened.