To the extent that healthcare reform is about cost, it implies health insurance coverage. So, “affordable healthcare“ is actually better named “affordable health insurance“. However, heavy healthcare organization merger activity...
has created market distortions. Be it nonprofit or for-profit, these organizations negotiate with insurance companies to get superior facility charge rates.
Since the insurance company’s revenue comes from employers and employees premiums (and insurance companies compete against one another for these premiums), the insurance company cannot readily increase its price.
The result? When healthcare organizations negotiate superior payments from insurance, then the smaller organizations get much less.
This lower revenue makes it harder for the smaller firms to operate. The result is more mergers. Last year, the American Medical Association stated that for the first time, more doctors are working for these networks...
But what are the majority of these services for? It’s for the treatment of the progression of chronic diseases, including heart disease and several types of cancer. These are diseases where key contributors are lifestyle choices.
To the extent that disease processes may be unavoidable, these are certainly delayable. ￼
Yet if we analyze what patient facing healthcare providers do, the majority of it is teaching and treating patients. But the portion with the high cost is… Treatment. Teaching need not be so.
Look at coronavirus. It’s moving markets and locking down countries. The public is not only aware, it’s hyper aware. They want to know what to do, and answers are rampant in the media and online. The answers are free.