Free market: The answer to healthcare system woes

June 25, 2012

Capitalism offers the most simple solution to the issues challenging our entire healthcare system. Such a system would allow physicians, hospitals, and anyone else to compete for patient business.

The free market offers the most simple solution to the issues that challenge our entire healthcare system.

CAR INSURANCE MODEL

Health insurance could operate similarly, and it also could allow for competition across state lines, with physicians and others soliciting business from patients directly, not through employers or closed networks. Under such a system, patients could opt for the coverage they want and pay providers directly. Costs associated with insurance company administration and government enforcement of compliance would be saved. The savings would be significant: Practices waste an average of $68,000 per year on health plan administration costs, according to a 2009 study by Casalino et al.

KNOWING COSTS VITAL

Quality, location, and patient preferences-not insurance rules and government limitations-should guide patient and physician choice. And, yes, costs cannot be overlooked as an important factor in healthcare decisions.

Under a free-market system, care would be provided to those who seek it-in private, secure, and individual settings-based on patients' personal priorities and values. All costs would be known in advance, giving doctors and patients additional perspective on the available options. A patient would be free to choose to have a lipid panel processed by a hospital lab that charges more than $400 or a private lab that charges $15.

Free-market competition would revolutionize healthcare delivery. The first step would involve all physicians and healthcare systems opting out of insurance and government programs and posting real cash prices for the services they offer.

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