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  • Rotten Food and the VA Hospital October 20, 2014
    by G. Keith Smith, MD Imagine for a moment that you own and operate a restaurant knowing that if you provide spoiled food and rotten service, you will subsequently make more money.  You openly employ strong-arm and intimidation tactics to …
  • Hospitals want patients to pay in advance October 17, 2014
    Hospitals are asking for payments from patients before they leave the facility so they don’t end up with unpaid bills. Knowing the costs before the procedure is important because insurance deductibles are increasing and so are procedure costs. Obamacare policies …
  • State Highlights: Mass. First To Require Health Care Price Tags; Health Disparities In Wis. October 15, 2014
    A selection of health policy stories from Massachusetts, Wisconsin, Illinois, Connecticut, California, Texas, South Dakota and Pennsylvania. WBUR: Massachusetts Becomes First State To Require Price Tags For Health Care Massachusetts has launched a new era of shopping. It began last …
  • Physicians Remove Government from Medical Equation October 13, 2014
    by Gerard Gianoli, MD Doctors in Nevada and across the country are protesting against the government’s intrusion into health care, but we aren’t voicing our concerns using bullhorns and pickets. Instead, many of the state’s 5,400 physicians are protesting silently …
  • Revolutionary Idea Could Change Medicine October 10, 2014
    For those of us who get woozy when having blood drawn for routine testing, a simple pin prick may be the blood test of the future. Elizabeth Holmes, the CEO and founder of Theranos, says that her company can run …
  • Why Accountable Care Organizations Are Failing October 8, 2014
    by Richard Amerling, MD Accountable Care Organizations (ACOs), a key piece of the Affordable Care Act (“ObamaCare”) “reform” plan, are failing because they must fail. ACOs are based on faulty assumptions, poor economics, and junk science. They would not exist …

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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