Re:If you imagine a business making surgical facemasks is wo...
by roenxi on Monday April 06, 2020 @03:36AM
(#22791593)
Great comment; agree all the way. But I do think that it lost the specifics here so I want to highlight them:
Stitches are very easy to administer. Nobody needs a uni degree to stitch up a wound. They need lots of practice.
It is impossible for a reasonably free market to charge $5,000 for 3 stitches; because an independent doctor would set up next door with a sign saying "Stitches; $4,500!" and drive home in his Lamborghini every day. The hospital and the independent doctor would then start undercutting each other until the margins were no longer outrageous and they have to think a bit before dropping their prices any further.
If a hospital can get away with charging $5k for 3 stitches, any market freedom has long ago been exorcised.
Stitches are very easy to administer. Nobody needs a uni degree to stitch up a wound. They need lots of practice.
It is impossible for a reasonably free market to charge $5,000 for 3 stitches; because an independent doctor would set up next door with a sign saying "Stitches; $4,500!" and drive home in his Lamborghini every day. The hospital and the independent doctor would then start undercutting each other until the margins were no longer outrageous and they have to think a bit before dropping their prices any further.
If a hospital can get away with charging $5k for 3 stitches, any market freedom has long ago been exorcised.