Health Care and Economics
It is why the price of health care is high: demand for health care far exceeds its supply. But is this true? How do we reconcile the high cost of health care with the fact that there has been for the last 20 years an enormous oversupply of doctors and hospitals both competing for patients? How is it possible that hospital costs are exorbitant, $800 a day for a private bed ($5,600 a week), yet half the nation’s hospital beds are empty?
Property, auto and health insurance information were provided by private insurance agents. Information on historic rates is very difficult to come by—insurance companies won’t release it; they call it “proprietary information.” The agents asked that their names not be divulged; they had no right to offer it.