[pokerbobo]

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A few problems here.... Doctors will be paid a set amount for procedure X. Govt will increase this amount with inflation year after year like is done with almost all govt budget items. Problem: There is no incentive to improve on procedure X. In a capitalist system, procedure Y and Z can be created that may improve results and or lower cost of procedure. In a govt program, who is going to improve on procedures or lessen costs when it nets out as a loss in income. The capitalist program provides this incentive by competition, whereas any improvements to treatment or lower costs can be marketed to provide greater income to doctors and provide lower costs and better care to patients.

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I think there's a couple of problems with this kind of thinking (although generally speaking you have a point).

First of all, if doctors are being paid $300 (as per government regs) for procedure X, and procedure X takes an hour to do and a $5,000 piece of equipment, then they are very incentivized to discover innovative ways to do the procedure in 15 minutes and/or with a piece of $1,000 equipment.

Secondly, many medical innovations are done by research physicians who are 1) compensated via salary by their facility and 2) are interested in research more than patient care. Making the market for medical services competitive will not necessarily drive frontline doctors to start a research lab in their basements on weekends.

Finally, medical services "don't work like" consumer goods. Certainly, many doctors are in it for the money, but conversely many doctors are in health care because they care about health care. Now, they're not immune to financial pressures, but there is a real cultural difference between doctors and, say, bond traders. That is to say, creating financial incentives for doctors doesn't have the same effect is does for commissioned sales people.

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We could also imprison a-holes like John Edwards who sue doctors into bankrupcy and raise malpractice premiums sky high. He has destroyed lives, and increased more risky C section deliveries because of his lawsuits. Some docs are so scared now, they grab the scapel way before they should just because of the legal fear he has created.

John Edwards is a criminal, who got rich by putting wealth ahead of truth. Anyone who thinks he is "for the little guy" is dumb, uninformed, lying to themselves, or all of the above.