OK, but are we really incapable of drawing a line, here? If 20 minutes in a hospital room can cost $11,000, why not $100,000? $1 million?
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Defensive Medicine - following pre written "cookbook" guides and ordering unnecessary tests, all to avoid medical malpractice liability, does increase cost. However, blind subsidization, esp by govt, creates much more of a problem.
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I think the problem boils down to incentives - everyone is paying for services used by others. People use services from doctors paid by insurance funded by employers. That $11k fraud? Most people don't care because most don't pay it.
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If people paid out of pocket for medical services, there would be a consumer revolt. People would simply refuse to pay, dare hospitals to sue for debt collection, and then collect punitive damages when courts spank the providers for not getting informed consent or disclosing cost
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"Learn to code" is the key revenue generation strategy in the US healthcare system.
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Asymmetric liability; the big awards from malpractice insurance suits (how did you not run X test on patient who later died of rare cause Y) are part of what make hospitals insist on a lot of unnecessary care.
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Do you have the link to article? I am curious if the insurance company had any sort of contractual agreement with the hospital that established a general fee for births?
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