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?