This lack of competition for patients has a profound effect on the quality and cost of health care. Providers typically do not disclose prices prior to treatment because they do not compete for patients based on price. Payments are usually not made by patients themselves but by third parties — employers, insurance companies or government. But according to Devon M. Herrick, Ph.D., a senior fellow with the National Center for Policy Analysis, in health care markets where providers do compete for patients, not only do prices come down, but outcomes improve.
According to Dr. Stuart Weinstein of the American Academy of Orthopedic Surgeons, we could save at least $200 billion a year from simple legal reforms.
CEOs are trying many initiatives to lower their companies' health care costs. But will it be enough?
Health care costs are soaring and employees don't want to pay, leaving CEOs with one very expensive problem.