Pricing Based on Bureaucratic Whims Adds to Healthcare Crisis


Quality medical services are harder to find and more expensive when pricing is set by city ordinances instead of real market pricing.

(From Reason.com)
The lack of real market pricing isn’t the only problem with American health care, but it’s a big one, and it affects nearly every aspect of the system, distorting incentives for providers, administrators, and payers, often at the expense of the sick.

It also creates incentives for poor medical care and practice, because health care providers—or at least the administrators who organize the systems in which they work—end up serving third-party payers rather than the individual humans whose treatment should be paramount.

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