In the United States, we have a private, or not government run, healthcare system. This means that doctors, hospitals, insurance companies, and pharmaceutical companies all operate in a capitalistic fashion. The set their prices through services or products they provide and have competition with other companies or practices in the nation. .
The way healthcare is provided has changed greatly over the past fifty to sixty years. Medical attention was paid for out of the patient's own pocket and payment decisions were decided between the doctor and the patient. Occasionally doctors performed pro-bono work for those who desperately needed attention and sometimes charities raised money for patients as well. Many necessary tests and treatments today were once thought of as elective and caused a different viewpoint of what was necessary for proper treatment (Woodstock).
With the arrival of third-party payers, or insurance companies, both patients and practitioners are protected from the immediate cost of health care. Yet, when patients pay only a small fraction of the cost of treatments, it allows the patient to consume more treatment than they need and allows practitioners to suggest more services then what medical judgment justifies (Woodstock). Third-party payers do not pay doctors or hospitals immediately after medical care, so hospitals and doctors add approximately 15% to the bill. This extra fee is then passed on to the healthcare policyholders through their insurance company. The result is increasing premiums for patients (Citizens).
Our current healthcare system allows for good quality care for the patient. This is achieved through a patient's choice of doctors and hospitals through their insurance companies. Doctors and hospitals compete for business by offering superior care and state-of-the-art treatments. This competition draws more practitioners into the healthcare industry and makes doctors more available to patients (Jones).
