Replacing Myths with Markets

images (22)Hardly a week goes by that we don’t hear a defense from the status quo about how different healthcare is from any other services or commodities. The dogma, based on economic fallacies, is pervasive.

We’re asked to believe that advanced pricing is unrealistic, yet the majority of care is scheduled in advance and much of it is elective. We are supposed to believe that value-based reimbursement is the savior and FFS is the root of all evil; yet VBP lacks the very price transparency required to determine value. We are told healthcare is an “essential” service, the implication being that it is rarely a voluntary transaction, therefore it does not respond to market forces; despite voluminous data to the contrary.

There are many essential commodities that are necessary for life, all of which are obtained with advanced transparent pricing. It should not surprise us that these essentials are in abundance with mostly affordable prices and arguably more important to our daily survival than healthcare; largely because these “essentials” are obtainable in an competitive price transparent Market. The idea that Healthcare is “oh so different” and cannot benefit from the discipline of the market, and the price transparency that comes with it, is a myth that should be put to rest.