Implementing retail medicine and free market concepts is the best way to tackle healthcare inefficiencies and control costs, the Goodman Institute's John C. Goodman said in a Forbes opinion piece.
The Goodman Institute is a think tank that played a major role in shaping the Republican approach to health reform.
Mr. Goodman pointed to four examples of retail medicine:
1. Oklahoma City-based Surgery Center of Oklahoma posts prices for 112 common surgical procedures, deals primarily in cash and doesn't accept Medicare or Medicaid or negotiate prices with payers, making otherwise expensive hospital care affordable, Mr. Goodman said.
In a book by Charles Silver and David Hyman, SOC is compared to Oklahoma City-based Integris Baptist Medical Center. The authors found Integris charged $33,505 for a complex bilateral sinus procedure — excluding surgeon and anesthesiologist fees — while SOC's all-inclusive price for the same operation was $5,885.
2. Cosmetic and LASIK surgery markets benefit from lack of third-party payer involvement, price transparency and price competition, according to Mr. Goodman. Prices in those markets have fallen despite a surge in demand and technological innovations, he said.
3. Walk-in clinics such as CVS Health's MinuteClinic list prices — which are often up to 80 percent lower than other alternatives — and distribute electronic beepers for customers who'd like to shop instead of waiting in line.
"People like it," Mr. Goodman said. "Half the U.S. population lives within 10 miles of one of CVS Health's 1,135 MinuteClinics, making CVS 'arguably the country’s biggest healthcare company.'"
4. HealthCare Partners Medical Group lists prices online for 58 common procedures online, and Atlas MD offers a wide range of adult primary care services for $50 to $75 a month. Mr. Goodman highlighted direct-pay medicine, calling it "the best buy for primary care you are likely to find anywhere."
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