oily matter
John D. Rockefeller built Standard Oil over a century ago. He used a lot of savvy to make the oil business. One thing he did was he'd negotiate with railroads for the cost of transporting his oil (and he did A LOT of transporting). Independent (or even just smaller) oil producers invariably paid higher transport rates. Rockefeller's haggling made the company millions, over time. Many independents just couldn't compete with the lower cost structure and disappeared, or were bought up by Standard Oil.
If you need a colonoscopy in the near future, that procedure will have a total cost and price. If you are a Medicare (or other government-type patient) it will be the "lowest" price (generally). If you are privately insured, it will be the middling price. If you have no insurance at all, are paying out of pocket, you will pay the highest price.
The government has much more negotiating power than does an uninsured private payor in determining their price of medical procedures. If you are an individual, you have almost none. The hospitals need the private payor to have any real chance of making money for the stockholders?
So, was it all right that Rockefeller used his negotiating power in this way? Is it all right that the US government does so? Finally, is it all right for the private buyer of that colonoscopy to pay the highest price?
(I am only a layman here, feel free to correct anything, or discuss any aspect of this I might have missed. Thanks.)
If you need a colonoscopy in the near future, that procedure will have a total cost and price. If you are a Medicare (or other government-type patient) it will be the "lowest" price (generally). If you are privately insured, it will be the middling price. If you have no insurance at all, are paying out of pocket, you will pay the highest price.
The government has much more negotiating power than does an uninsured private payor in determining their price of medical procedures. If you are an individual, you have almost none. The hospitals need the private payor to have any real chance of making money for the stockholders?
So, was it all right that Rockefeller used his negotiating power in this way? Is it all right that the US government does so? Finally, is it all right for the private buyer of that colonoscopy to pay the highest price?
(I am only a layman here, feel free to correct anything, or discuss any aspect of this I might have missed. Thanks.)