Health Care: September 2009 Archives
The free market works best, right? Supply and demand set the correct prices for goods and services. The consumer chooses the best options and thereby makes the best supplier successful.
This actually works for a lot of things - even for health care providers. For example: consumers will continue to use providers who offer a good ratio of quality care vs price. If the price goes too high, consumers will choose a cheaper provider. If the quality of care goes too low, consumers will choose a better provider.
Likewise, providers have an incentive to keep consumers (patients). It doesn't matter whether the patient sees the physician annually for a checkup, or weekly for chemotherapy: it is profitable to retain the patients you have and, when possible, add new ones.
Where this doesn't work is with insurance.
This actually works for a lot of things - even for health care providers. For example: consumers will continue to use providers who offer a good ratio of quality care vs price. If the price goes too high, consumers will choose a cheaper provider. If the quality of care goes too low, consumers will choose a better provider.
Likewise, providers have an incentive to keep consumers (patients). It doesn't matter whether the patient sees the physician annually for a checkup, or weekly for chemotherapy: it is profitable to retain the patients you have and, when possible, add new ones.
Where this doesn't work is with insurance.
Continue reading Why For-Profit Insurance Doesn't Work for Health Care.
