[scarejunba]

If this were true, then nations with deregulated health care would also have high prices. Instead they have low prices and better outcomes.

Patients shop on reputation. In a country with less regulation, like India, you see competing hospitals across the spectrum of price and performance. Everyone knows which ones are good and which ones are expensive. People know which hospitals they're going to attend before they fall sick. The outcomes in their top cardiology departments are way better than those in top American cardiology departments.

Their doctors perform way more surgeries and are therefore far more practiced and experienced. They are far cheaper because there are so many more of them.

[pushtheenvelope]

the Indian example you cite is correct, but only works well for the middle and upper classes who can afford to pay for the care (for now, see below).

For the majority of lower-middle and poor class, medical care is hard to obtain because they cannot afford the private care, and the government-run hospitals that offer low-cost care suffer from bad service, and inadequate facilities/medicine.

India is well on its way to emulating the American medical system:

(1) medical costs have been rising at a rate of 15-25% a year (where inflation has been 5-10%). This is okay for now, but in about 2 decades will price out even the affluent classes.

(2) Health insurance is being touted by the Indian government as a solution to this -- which is the first step to going down towards the American model of healthcare. India also has poor safeguards against crony capitalism so I expect large insurance companies to capture the regulatory framework to frame rules in their benefit.