Competitive Pricing Will Change Healthcare, Not Government
The day that hospitals and doctors actually compete against one another based on price, patients will finally win.
Despite what Democrats will tell the public, the U.S. is a free market economy. While innovation, invention, novelty and superior service can all set businesses apart from their competitors, what really invigorates business in a free market is competitive pricing.
Everybody in the WORLD loves a good deal. You see it in street markets worldwide: the art of haggling over price. Some cultures THRIVE on haggling and pride themselves as experts both buyers and sellers! But think about it, when was the last time you found a “good deal” in healthcare? What would define such a find? Let’s ponder that as we take a look at free market economics in healthcare…
First, let’s consider what a true “value” would look like in the healthcare market. Value is currently defined in the U.S. healthcare industry by the strength of a brand, the variety of specialists in an office/hospital or perceived quality of services rendered. Do those things really bring more value to your time or healthcare dollar? I think NOT. As a matter of fact, these perceived “values” actually end up costing you MORE because the cost of those things is shifted back to you, the consumer, in the form of pricing mark-ups. You may not feel it the day you go in for service, but you will (along with everybody else) when insurance rates go up. I’d say Americans are getting LESS for their healthcare dollar today than ever before because of pricing inflation and lack of legitimate, tangible value.
To me, legitimate and tangible healthcare value should look and feel like I’m getting a deal: I got more than I paid for. Have you ever experienced that in healthcare? In my DPC practice, I feel this every time I pull back the curtain on medication prices and reveal that —“Surprise!!” — medication is actually REALLY CHEAP. My patients feel tangible value when they can text me and get an answer back that hour, or be seen after hours and not be charged extra for “convenient care.” They also love the fact that I’ll take off worrisome skin lesions and they get charged nothing for my services. My patients love that I coach them through everything from keto diet to getting over gastroenteritis for NO ADDITIONAL charge. Some of them even feel like they’re not paying me enough in the months that they need me the most! I’ve received more “thank you” texts, cards and even flowers (!) than I ever did taking insurance for payment. It’s time doctors and patients got more for their money in healthcare!
But, what about the big guys? What if there was a way to make ERs, surgical centers and hospitals compete your your business based off just price. Is there a way for patients to shop around in order to get a lower price? Absolutely! Look how this simple concept has been at work in free markets here in Oklahoma and is expanding:
Surgical Center of Oklahoma has been posting prices for years. People from all over the country have benefited from having an economic choice in the cost of their surgery. I recently priced out a tonsillectomy for my son. The global fee is right there in plain sight on the SCO website. A quick call to my surgeon’s office informed me he prefers to do surgery there rather than the hospital citing ease of scheduling and OR efficiency. (It probably doesn’t hurt that he gets paid up front, either!) A call to the insurance company was a 20 minute ordeal which yielded nebulous numbers: They had no idea of what price the hospital would charge for their services. This is not to mention that there are separate bills to come later from the surgeon, anesthesiologist and pathologist.
Oklahoma ER and Hospital. It’s the only ER you can call and have them quote a price for services including labs, imaging, IV access, meds and physician services. My patient went there and was treated like a queen. She couldn’t get over what an awesome experience it was!
Sesamecare.com is a new service that just hit the OKC area. From the makers of Expedia.com comes a website marketplace for those seeking cash healthcare services. Patients can search for services they need with a provider they choose at a price point they want. It helps doctors find patients, but then it’s up to them to provide a service product that patients either want to come back to or not.
Wouldn’t it be great if sesamecare.com got hospitals & ERs to compete this way? If that were a success, patients could finally benefit financially from hospitals seeking your cash business. As of this writing, there’s too much risk for hospital systems to desire cash business due because patients default on payments. When patients want competitive cash pricing and are ready to pay up front for good deals, the healthcare industry will answer.
American frustration with healthcare fundamentally exists because it doesn’t line up with our business ideals as a country. Instead of a free market, “Healthcare” is a fixed system out of consumer’s hands. Government take-over would be even more disastrous than the insurance-based system we have now! Rationing of services and lack of choice are used in socialized countries to control cost and quality. This is un-American by even our own standards.
If you want real value for your healthcare spending, I challenge you to shop cash-based practices, ERs, hospitals and surgical centers. Just start with just cash-shopping your prescription medications if you’re squeamish. Seniors are particularly vulnerable to price gouging in prescription drugs. Stop using your insurance or Medicare and use cash instead! If you do a little homework, GoodRx, a DPC practice, even Wal-Mart or Sam’s Club can get you deep discounts on generic medications. Oftentimes, a DPC practice can save a patient enough money on medications that it offsets the monthly membership fee!
For primary care, try a DPC. most of my patients HAVE insurance, but they will all agree that access to holistic care as well as discounts on labs, meds, & procedures make the membership worthwhile.
Thank God I got out of Medicare before it becomes Medicare for All!