Re:Show HN: Compare prices that US hospitals charge patients...
by IG_Semmelweiss on Monday January 18, 2021 @09:07PM
(#25829146)
I respectfully disagree to one piece of your logic.
The effect. The effect will be strong.
The logic that you posit to contradict this is that for most patients "there will be no incentive to search for better prices". That seems to ignore entirely the dynamics of other established businesses like supermarkets.
Most people go to supermarkets and the vast majority are not looking for the absolute best price or even the median price. However supermarkets battle out in pricing to catch the few customers that they know are price sensitive. Its the minority rule. This is a positive externality by which everyone benefits.
This same dynamic will be observed in healthcare.
I agree in that much of it is unknown and also the time horizon is very uncertain. But the effect will be felt and it will be profound.
The effect. The effect will be strong.
The logic that you posit to contradict this is that for most patients "there will be no incentive to search for better prices". That seems to ignore entirely the dynamics of other established businesses like supermarkets.
Most people go to supermarkets and the vast majority are not looking for the absolute best price or even the median price. However supermarkets battle out in pricing to catch the few customers that they know are price sensitive. Its the minority rule. This is a positive externality by which everyone benefits.
This same dynamic will be observed in healthcare.
I agree in that much of it is unknown and also the time horizon is very uncertain. But the effect will be felt and it will be profound.