Fee-for-Service Not Responsible for Health Cost Inflation
I like to be in America!
Is Fee-For-Service the Problem?Almost everyone involved in health care will tell you that the greatest problem in our system is that we pay on a fee-for-service basis. Almost everyone is wrong.
- Information asymmetry (the providers know more than the patients). Of course, but that is also true of, say, criminal law or engineering.
- Health care is essential to life. But it is far less essential than food or housing, which do not require third-party payment.
- Patients are too fearful to make rational decisions. More fearful than if I were arrested and locked up at Riker’s Island?