And you wondered why health care is expensive
John-John Williams has a piece in today's paper on the arms race among Baltimore hospitals to offer patients the most luxury.
Hospitals are vying for patients through upscale services, including complimentary valet parking, house musicians and round-the-clock room-service meals. In the Baltimore region, where top-rated hospitals abound, the competition can be fierce, and these added perks can tip the scales for potential patients.
OK, there is a quality-of-care argument to be made for private rooms. Patients without roommates tend to catch fewer bugs from other patients. And 32-inch flat-screen TVs in every room will not by themselves break the back of the national economy. But attempts to make hospitals look like the Grand Hyatt betray wider flaws in the health-care system.
Patients love these upgrades in the same way that they love the latest and most in operations and tests. And why not? Even though many of these items may contribute little or nothing to improving patient health, patients for the most part don't have to worry about the extra cost -- at least not directly. So why not demand the in-house harpists and palatial lobbies? It's not your money -- until your insurance premiums and federal taxes get raised to pay for it all.
Comments
This is why I am opposed to the healthcare reform as it stands.
We seem dedicated to increasing the divide between the care that we receive and the price we pay. We such a disconnect exists it alters the decision making of everyone involved in the exchange: both doctors and patients.
It creates a situation where doctors and hospitals have an incentive to call for more expensive tests/meds/treatments than may be required and patients have no reason to say no since the cost is borne by the insurance company (or the government).
Then, who pays for it? Everyone who buys insurance or pays taxes, in the form of a greater average cost.
The best way to keep costs down in any situation is to make people aware that everything they consume has a price. Why are people so unwilling to pay for healthcare? It's something that we need to ensure a good life. Acting as if paying for it is wrong just forces the government to get involved and create boondoggles such as this -- only a lot more so.
Posted by: John J. Walters | December 2, 2010 11:47 AM
"The art of medicine is keeping the patient entertained while nature takes its course." - Sir William Osler
(yes, that Osler)
---
Related... the mandate that ALL HI policies provide wellness and basic exams as a basic element (generally a good idea) misses the boat when that gets applied to HDHP's.
But the HI companies don't miss this opportunity to charge the extra $50-$100 per month (over past premiums).
Posted by: MrRational | December 2, 2010 12:31 PM
Craziness. I don't have these amenities in my own home.
Posted by: Michelle Brown | December 2, 2010 1:39 PM
Michelle-
I don't either, and it appears that a big reason why is b/c I'm paying for everyone who's sick to have these amenities.
Posted by: Bruce | December 3, 2010 1:19 PM
Have not colleges and universities done the same thing by offering as standard amenities most would consider luxuries?
The economics of both health care and college education explain this phenomenon perfectly. The person choosing the supplier of the benefit, whether it be health care or education, is not the one paying for it! In the case of education the person paying is either a guilt-ridden parent or the taxpayer via a subsidized loan. In the case of health care the cost of service is spread out over a large group, including the general taxpayer.
Take the same people who think nothing about the cost of their medical care and ask them to buy you lunch and you will be surprised at how much price suddenly matters!
Posted by: Dan | December 3, 2010 3:13 PM
Don't forget the outrageous salaries of the senior management of the institutions, as exposed in The Sun a few months back.
Posted by: Gary | December 3, 2010 11:46 PM
The best way to keep costs down in any situation is to make people aware that everything they consume has a price. The economics of both health care and college education explain this phenomenon perfectly.
Posted by: excessive sweating | December 7, 2010 1:50 PM