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  • Economists Say Third-Party Payment Key to Increases in Medical Cost October 1, 2014
    The rapid increase in medical costs starting in the 1970s is commonly ascribed be market imperfections. However, federal and state governments have long suppressed the functioning of the market system in the medical industry, write Maureen Buff and Timothy Terrell, …
  • Health Insurance Exchanges Waste Taxpayer Money September 29, 2014
    Obamacare may surpass Cash for Clunkers to become the prime example of federal taxpayer resource mismanagement. For every dollar in premiums for exchange coverage, taxpayers paid 94 cents in subsidies to either enroll people or encourage them to do so. …
  • Mesothelioma: An avoidable cancer? September 26, 2014
    by Sue Redmond Did you know? Mesothelioma is an aggressive cancer that attacks the lining of the body cavity called the mesothelium (80% of which occur within the lining of the lungs). The only known cause to mesothelioma is exposure …
  • Government Healthcare is Breech of Contract September 24, 2014
    by G. Keith Smith, MD One of the smartest people I have ever met is a property and contracts lawyer, someone from whom I have gleaned countless and valuable insights over the years.  He has advised me, among other things, …
  • Dr. Alieta Eck Campaign Update September 24, 2014
    Dr. Eck http://EckForCongress.com speaks to colleagues at AAPS 71st annual meeting on September 5, 2014.
  • Is There A Provider In The House? September 22, 2014
    by Marilyn Singleton, MD, JD Physicians have a proud heritage. We can boast Dr. Benjamin Rush, a founding father, signer of the Declaration of Independence, Surgeon General of the Continental Army, and opponent of slavery. And Dr. James Derham, born …

Free Market Medical

When a company purchases “Healthcare”, they are buying a medicratic system of payments. Whereas medical care used to be the product, it is now simply a byproduct used to increase the profitability of “healthcare”.

Most companies have purchasing guidelines used for buying computers, printers, and other equipment. These guidelines usually involve getting 3 competitive bids before they purchase. We may do this when buying a “health plan”, but the health plan is based on opacity, price fixing, and the suppression of competition. MediBid tenders out each and every medical procedure, allowing the buyer to review competing bids and comparing them on the basis of cost, quality, and location. This works when buying equipment, and guess what! It also works when implemented with a health plan to purchase medical care.

It is widely believed that advances in technology reduce the cost of most goods. So why do healthcare costs escalate at two to three times the rate of wage growth despite technological advances? What if we totally changed the paradigm, and applied new criteria to the question? What if we asked the question; why do costs decrease when we apply corporate purchasing guidelines of competitive bidding, while healthcare costs escalate at 2-3 times the rate of inflation because we use a system of price fixing, opacity, and suppression of competition? If we change that paradigm, will technological advances in medicine be unleashed allowing sustainable cost reductions through a competitive market?

Have we simply been using the wrong assumption when asking the question?

For ONE corporate client alone, we project savings of $1,344,000 per year based on the competitive bidding process for ONE procedure that their employees use 2,400 times per year. IMAGINE if we put out to bid the top dozen procedures? Oh, and by the way, that one procedure is not a high cost procedure, nor is it their most often used procedure.

The next time you wonder why a TV or computer costs less today than it did five years ago, which healthcare costs more than it did five years ago, ask yourself the following question: “Did technology improvements decrease the cost of one, and increase the cost of another product, or did a competitive billing process employed by corporations, and individuals decrease the cost of TV’s, which price fixing increased the costs of healthcare?

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