Hi Dr. Jauhar,
Thanks for the fantastic article in the New York Times today, "That Medical Test Costs $50, or Is it $500."
Jonathan Bush describes this problem in his book, "Where does it Hurt? An Entrepreneur's Guide to Fixing Health Care. In this, he actually suggests giving the saved money to the patient when the patient chooses the less expensive option.
For example, say a patient has the option for medical management (say $5,000) or aggressive chemo that may add 2 months of life at risk of extreme fatigue and continuous vomiting (say $25,000). If the patient chooses medical management (in essence saving the system $20,000 with that choice), then the system would give the patient same of the savings, say $10,000--which the patient could use for whatever--passing to children, paying down debt, spending his last few days eating nice food.
What do you think of this idea?
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