Lessons of a $618,616 Death: Sellers Don't Set the Prices and The Buyers Don't Know What They Are
BUSINESSWEEK - "Two years after her husband's death, Amanda Bennett's cover story examines the costs of keeping one man alive:
Looking at that stack of documents, it is easy to see why 31% of the money spent on health care went to paperwork and administration, according to research published in 2003 in the New England Journal of Medicine. That number has stayed the same or grown since then, says Dr. Steffie Woolhandler, a professor at Harvard Medical School and a co-author of the study.
The documents revealed an economic system in which the sellers don't set the prices and the buyers don't know what they are. Prices bear little relation to demand or how well goods and services work.
"No other nation would allow a health system to be run the way we do it. It's completely insane," said Uwe E. Reinhardt, a political economy professor at Princeton University who has advised Congress, the Veteran's Administration, and other federal agencies on health-care economics."
HT: Garret Hartwig