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06/21/2014: "Cheap Healthcare Website Destined to Fail"

Filed under: Healthcare,insurance,Politics: Healthcare
Tags: doctor, free market, Healthcare, insurance, website

The South Bend Tribune has this Associated Press Story about a website that allows users to search for health related services in an attempt to find low cost providers. The site is a good idea, but will fail. Why, you ask? Because the "medical business" is not like other businesses (this is also why "free market" approaches fail). Not because doctors are greedy, or they don't want to negotiate their prices (as they do everyday with insurance companies), but because the rule of law will not allow them to. See every doctor has to follow rules. Some are legislated, which is not what I'm writing about here, and some are contractual. These contractual rules often contain "non-disclosure" clauses, which prohibit telling you why the site will fail. If a doctor wants the dollars from big insurance, he signs the contract, sign the contract, play by insurance's rules, and don't tell anyone what the rules are. Unfortunately, this make doctors look bad, which they hate, but they cannot afford to not sign insurance contracts. So, the site will fail, docs will look bad, and everyone goes back to the same old way of doing things. Ask yourself who benefits from this failure of a free market system, and you will see where the problem lies. Unfortunately, those who know can't talk about it.

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