Tuesday, February 26, 2008

The Nike salesman

So lets say I work at a running shoe store where I sell running shoes to any one interested. Unbeknown to the customers, I secretly met with nike before hand, and they told me that for every pair of their shoes that I sell, they will give me half the profit they make from it. So you are the first customer coming in for the day and you tell me that you need some running shoes, which ones do you think I am going to sell you? Do you think I will care what shoe you really need? Do you think I will care if the Nike ones are inferior quality and more expensive? Seems like a conflict of interest.

I have 2 analogies I wish to compare to this. The first is obvious. If I am a Medical Doctor that gets a kick back from pharmaceutical companies if I prescribe their product, do you think I will be more inclined to do just that? What if the patient doesn't really need them?

The second is this. Medicare is usually by far the worst paying insurance company out there, and every health care provider knows it. The problem is that so many are on it so everyone needs to accept it. Now if a Doctor has a medicare patient coming in, and a cash paying customer coming in, who do you think is going to get better care? Who do you think the Doctor is going to spend more time with. Now if the government were to go to a mandated health insurance where everyone was required to be insured, their idea would be that they are increasing the quality of healthcare. Well all the really good Doctors are just going to go to cash only practices and the rich will then have way better healthcare then the poor who can't afford to pay cash.

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