Is it possible to apply market principles to medicine, or does it need to be controlled by government regulations and constraints?
We believe that one of the many reasons that “healthcare” costs so much is because medical care costs so much. A few of the reasons that medical care costs so much is;
- There is no transparency in pricing, and the effects of consumerism are constrained by third party payers.
- Third party co-payments, and co-insurance also artificailly affects demand, which as we all know affects the pricing.
- The erosion of the patient-physician relationship increases the demand for extra tests and diagnostics, whcih are often not needed.
- Changing insurance plans into “prepaid healthcare” plans increases demand for services, since high premiums create an entitlement mentality and increase demand. This vilates the principles of insurance. If your care insurance covered a new set of tires every 12 months, woudl you change your tires more often or less often?
MediBid is built on market principles, and reduces or eliminates these and other problems in medical care.