I think the $50k is probably "way low" at today's rates. I'd like to see a comprehensive accounting for a recently performed procedure and have every itemized charge examined and justified.
Here is how I can imagine a forensic audit interview would go:
"So, why is the single aspirin being charged at $15?"
Answer, "Because the overhead in the post-surgery wing is so high, we need to pad the bill any way we can","OK, show me the itemization of the overhead",
"Oh, geez! Why are these liability insurance premiums so high?".
Answer, "I dunno, we can't find any cheaper rates".(Then we would need to bring the Insurance Company in to justify the rates, and I'm sure the high rates are a result of wacky payouts from lawsuits.)
"Let's get back to your overhead, what is with all this accounting, billing, compliance and other 'pencil-pushing' expense?"
Answer, "Government mandated paperwork is, by far, our largest expense. They won't allow us to be in business without it"."So, from what we've seen so far, the time, the expertise, the real costs of materials and devices, the charges that actually are contributing to the benefit of the patient, plus a reasonable profit, are about a tenth of the total charges, is that right?".
Answer,"Yep, welcome to the world of modern medicine."
Regulatory and tort reform is what we need. Every expense needs to be critiqued, investigated and justified, we don't need over-regulation and it's time to shut-down the "lawsuit lottery"
