StingRoy
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What are you talking about? Govt should never step in. If there is money to make more and more hospitals would come up pushing the prices down. We had enough of government intervention until 1991. We weren't advancing as fast as we do now because most prices were set artificially down driving down the competition. All Govt needs to do is make sure they are not colluding among themselves.
If you have stayed long enough in the US, you would quickly realize that it is not the case. There are a ton of hospitals around all providing equally professional healthcare equal to the best in the world, but have you ever had a look at the costs?
The issue is that if these private hospitals are left unregulated, they start pushing the prices up, and since already the cost of healthcare is already high most people would end up buying insurances and once the private hospitals have enough "clientele" who have health insurance, they will keep on pushing the health care costs since the insurance companies wouldn't be haggling with each and every rupee on the bill.
What needs to be done is to prepare different categories of hospitals and have them certified by the govt, once they are certified, the govt can prescribe a fair value cost range for medical treatment at such places. Already the insurance companies are doing so in India and deciding on pre negotiated rates, but without much regulation from the govt it is going to go the US healthcare way.