Quote:
Originally posted by Replaced_Texan
Yes, I agree, insurance companies negotiate very low rates, lower than the average rates.
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Let's think of this like capitalists. Why can the insurance companies negotiate lower rates? Answer? Because there is excess capacity in the system.
Insurance companies wouldn't have so much power to lower rates if there were less hospital beds and operating rooms. If some of these hospitals went under, and when they do, then we will have a problem with too little capacity and then the hospitals will have the power.
Niether is a good situation. The only reason that the non-profits don't go under is because they are supported by endowments/donations. That is the market flaw - they are kept in business by donations.
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