http://www.kevinmd.com/blog/2007/10/bill-for-appendicitis.html medical blog Sun, 22 Nov 2009 07:50:13 -0500 http://wordpress.org/?v=2.8.4 hourly 1 http://www.kevinmd.com/blog/2007/10/bill-for-appendicitis.html/comment-page-1#comment-81362 Anonymous Sat, 27 Oct 2007 02:38:00 +0000 http://clients.emmense.com/kevinmd/2007/10/the-bill-for-appendicitis.html#comment-81362 But in any other market the question never is what does the procedure cost to provide, but what is it worth to the recipient. Does any other industry charge only the 'worth' of their product, or that price that the market will bear?<br/>The poster does not seem to use the word 'worth' in a manner consistent with how markets work. <br/>What is an appy worth to you as the one with the appy? Well, considering that left untreated if will kill you 10% of the time, and if medically treated (antibiotics and supportive care) will kill you 5% of the time $20,000 might be a pretty good value. Say you got 50 years of life expectancy left; a 10% reduction in death now translates into a statistical 5 years of life saved, and this for only $4,000 per year of life. Pretty good bargain. There's lots of health care people seek that has much higher cost/benefit ratios. But in any other market the question never is what does the procedure cost to provide, but what is it worth to the recipient. Does any other industry charge only the ‘worth’ of their product, or that price that the market will bear?
The poster does not seem to use the word ‘worth’ in a manner consistent with how markets work.
What is an appy worth to you as the one with the appy? Well, considering that left untreated if will kill you 10% of the time, and if medically treated (antibiotics and supportive care) will kill you 5% of the time $20,000 might be a pretty good value. Say you got 50 years of life expectancy left; a 10% reduction in death now translates into a statistical 5 years of life saved, and this for only $4,000 per year of life. Pretty good bargain. There’s lots of health care people seek that has much higher cost/benefit ratios.

]]> http://www.kevinmd.com/blog/2007/10/bill-for-appendicitis.html/comment-page-1#comment-81343 Anonymous Fri, 26 Oct 2007 16:47:00 +0000 http://clients.emmense.com/kevinmd/2007/10/the-bill-for-appendicitis.html#comment-81343 Actually, the extra $15,000 covers the hospital's extravagant building and landscaping programs and the administration's salaries and golden parachutes. He will also later get a bill for $5 for local telephone service. Actually, the extra $15,000 covers the hospital’s extravagant building and landscaping programs and the administration’s salaries and golden parachutes. He will also later get a bill for $5 for local telephone service.

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