The Washington Post headlined an alarming story that accused hospitals of trying to make a profit: “Fifty hospitals in the United States are charging uninsured consumers more than 10 times the actual cost of patient care…”
Gerard Anderson, one of the study’s authors, comments, “…consumers are paying for this when hospitals charge 10 times what they should. What other industry can you think of that marks up the price of their product by 1,000 percent and remains in business?”
Bottled water comes to mind along with women’s shoes, illegal drugs, cosmetics and Comcast.
The entire study displays an almost total lack of understanding of how any market works. The solution to the problem is more information and that’s something government can encourage.
Details in my Newsmax.com column: