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Source link: http://archive.mises.org/11226/mother-theresas-heart-surgeon/

Mother Theresa’s Heart Surgeon…

December 12, 2009 by

…is transforming “health care in India through a simple premise that works in other industries: economies of scale. By driving huge volumes, even of procedures as sophisticated, delicate and dangerous as heart surgery, Dr. Shetty has managed to drive down the cost of health care in his nation of one billion.” In the process, he and his doctors are making health care affordable to some of the poorest people in India.

Read the whole article HERE.

{ 11 comments }

Andrew T December 12, 2009 at 2:55 am

How ironic that the same liberals that want universal health care for all, also decry such impersonal and industrialized medicine. To say nothing of introducing market forces into health care.

Mike December 12, 2009 at 6:07 am

There is zero incentive for hospitals to cut costs with respect to market forces, because there are no market forces on the consumer end. A patient with a $200 deductible, pays that same deductible wherever he goes for surgery. If hospital A receives $20,000 for surgical procedure X, and Hospital B can offer it for $15,000, then the consumer should receive some of that cost reduction in the deductible, say $50. That would drive more patients to Hospital B… and you know the rest.

Randy December 12, 2009 at 7:33 am

Mike, To the contrary there IS incentive for hospitals to cut costs – that is why almost ALL health insurance policies (except those run by the government) have “Network Providers”. You, the end consumer pay more if you opt for service at an out-of-network provider.

Randy December 12, 2009 at 7:42 am

I should not have said “except those run by government”. Even those have “Network Providers” – they are the providers that have not yet opted out of Medicare. When Medicare providers can no longer off-set their losses on Medicare patients by charging more to their non-Medicare patients, that “network” will disappear.

Mike December 12, 2009 at 7:56 am

Randy,

Where I live, there are very few “out-of-network” providers. I have an HMO with Amerihealth. They also offer PPOs, POSs and a fee-for-service plans. The thing is, I checked, and all the regional hospitals accept Amerihealth’s HMO, so there is no reason to buy into a PPO or POS. I can go to UPenn, Thomas Jefferson, Temple, Hahnemann, Crozer, Cooper, etc, and it costs ME the same out-of-pocket AND the same annual premium. The same is true for all of the labwork companies, and almost all primary and specialty docs. There’s no incentive for ME to seek out lower cost care.

Terri K December 12, 2009 at 8:30 am

Interesting concept. However, I betcha Dr. Shetty doesn’t have to deal with interference from (to name a few):

OSHA, EPA, Workman’s comp, payroll taxes, unemployment insurance, minimum wage laws, licensing, Big Pharma, Big Health Insurance, Big Government Mandated Insurance plans with pre-set fees (or any other third party bureaucracy), government mandated fees-for-service, Medicare, Medicaid and SCHIPP, extra employees to properly file insurance paperwork, requirements that specialists stay in hospital 24/7/365, ERs filled with non-emergencies and folks seeking to feed their drug habit, having to run every test imaginable to keep the lawyers at bay, and ridiculously expensive malpractice insurance.

The problems with health care in the US boil down to too much government regulation and mandates and health insurance companies, in bed with congress and tied to employment (!!) which have completely divorced the consumer from the true costs–and responsibility–for his own health and health care.

The cure is to go “backwards”, towards more freedom, if we ever expect to fix it. The current paradigm is forever destined to keep costs high.

Ted Amadeus December 12, 2009 at 12:23 pm

If the goal of making health care affordable in America was actual instead of pretended, such a process might be implemented here.
Since the prime objective is to give government more power over who lives or dies while fattening the bank accounts of politically favored cabals and cadres in big, multi-national insurance and investment firms, don’t look for it here soon…
And the longer the doctors have to wait to get paid, the higher the price will be!

Sean A December 12, 2009 at 12:27 pm

Amazing story. Our country’s health care is so screwed that this guy has to set up in the Caman Islands just to serve Americans with a higher quality, lower cost service. Coincidentally, this is no charity service. The guy makes a higher profit so he must be evil [better able to serve consumers without the governmnet being able to take credit].

“In health care you can’t do one big thing and reduce the price. We have to do 1,000 small things.”
-Dr. Shetty

By “we” i don’t think he was referring to the Governmnet. Given the context (cutting costs on sutures), he was clearly referring to profit-seeking physicians.

Hard Rain December 12, 2009 at 5:15 pm

Well, it’s a lot better than what that sadistic hack did for India with her houses of death…

Carol Menabney May 9, 2011 at 6:49 am

Yes, please don’t quote me but I heard that Teresa was a fundamentalist, who believed in salvation through suffering. If that’s the case, sadistic is the proper description for her. I also heard that Indian doctors were glad when she died, apparently they thought she contributed to the suffering of the dying. I could go on ,but I won’t at this stage.

Caley McKibbin December 12, 2009 at 6:15 pm

Mother Theresa had a heart?

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