[seanp2k2]

Someone I know was recently in the hospital for heart surgery. Granted, it’s more involved than a “simple” ER visit, but the total time for the operation was ~7 hours with 4 days of in-hospital recovery after. Total cost: $260k

If you look at the per-hour breakdown it’s insane, even when you consider doctors making $500k+/yr . Consider also the actual hours in contact with a surgeon or doctor vs most of the time that was spent laying in their bed.

I also wanted to note that in every instance I’ve seen where the possibility of insurance is involved, medical care providers will give you a no-questions-asked “cash discount” of 30-40% (typically) just because you’re not the insurance. I basically read this as “we charge them more because we can”.

Also in the US: http://mashable.com/2017/12/14/study-shows-people-call-uber-...

[Retric]

No the 'cash discount' is simply the reduced paperwork and non payment risks on their side.

That 7 hour surgery could have literally hundreds of hours worth of back and forth with insurance companies before they get paid including a lot of doctor time. For most private healthcare providers, paperwork is by far their #1 cost for providing car.

[alphabettsy]

This is not true on the cash discount. Usually providers and insurers have negotiated rates that can sometimes be lower than cash pricing. Pricing is usually set high enough that there will be no undercharging and discounts can be given for cash.

With Medicaid for example you may be contracted to be paid $12 for a service, but $14 for Blue Cross and $20 for Anthem. The bill says you charge the $20, but you will only be paid what was agreed upon. The cash pricing is usually based on the highest reimbursement, but can be discounted at the providers discretion.

The models are complex, but there is more work and regulation for processing an insurance claim versus cash.