Why Are Hospital Prices So Crazy? Hint: The Hospitals May Not Be at Fault
Originally published in Forbes Mon. January 11, 2016
Imagine you are running a business and selling your product for a price that is three times higher than some of your rivals. Yet despite the price difference, you continue to sell all that you produce and make a fat profit in the process. Would you voluntarily lower your price instead?
That was a rhetorical question.
Heres a follow up: Would you feel guilty knowing that your price was so much higher than what consumers could have paid elsewhere? And if you did, would making out your deposit slips help you overcome that guilt?
John C. Goodman is a Senior Fellow at the Independent Institute and President of the Goodman Institute for Public Policy Research.
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