Originally Posted by
nobody's_hero
Ditto intoxiklown's post. I'd wager most of the cost you see providers charging, at least in hospitals, is to offset the huge number of non-paying customers who use the facilities. These folks have been encouraged by misguided laws like EMTALA which sought to force hospitals to treat emergent situations and then compounded the problem with lawyers and liability.
Everyone that comes into our ER does NOT have an emergent situation, by any means. But I guaran-damn-tee you that most everyone who comes into the ER with, say, a belly-ache, is gonna get: CT scan, IV start, chemistry panels, complete blood counts, cardiac enzyme labs, etcetera etc. In socialized medicine there would be more cost controls and scrupulous use of testing but that's because the facilities will be protected from lawsuit (think about it: socialized = state and how often do you see someone sue the state and win?). Private organizations are, however, supposedly 'evil manipulative entities' and will always be fending off lawsuits.
EMTALA, if followed as written, would mean anyone who comes into the ER who doesn't have a true emergency would be quickly evaluated by the MD and simply be told to go see a doctor in the morning. However, you'd be surprised how many people come to the ER who have been having symptoms for one to two weeks and suddenly thinks a $600 ER visit in the middle of the night makes more sense than a $50-100 visit to the doctor which they could have done yesterday or wait 'til morning.
Private and socialized healthcare systems are two totally different beasts. DamienTV pointed that out fairly well. However I disagree with his assertion that private healthcare systems try to provide the $#@!tiest, cheapest service and keep people coming back for more. Reputation would count for something in a competitive free market. It doesn't mean much today because thanks to our laws, no matter where you go they're required by law to treat you.
What you see today is the result of private companies trying to exist in a world where government regulations and fear of lawsuits have distorted any logical profit models that private industry relies on. For example, if you owned a grocery store, and every week the same exact jackass comes in the store, collects a basket of food, and walks by the checkout counter without paying (and maybe even smiles and boldly states that he won't pay!), eventually you'd put that person's picture on the wall and let all your employees know that he is not to be allowed into the store. Try doing that in healthcare, and you're just some 'heartless manipulative bastard' with no regard for the needy. And the government thinks that hospitals are supposed to be able to turn a profit with people doing this over and over and over. Well, they can try, but it involves recouping the cost via the more reliable patrons, and that's why the rest of us lousy schmucks get charged $500 for a piece of plastic medical equipment that was made-in-China for 50¢.
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