Well Look What We Have Here! (Health Care Scams)
The Market Ticker ® - Commentary on The Capital Markets
Posted 2013-02-21 09:51
by Karl Denninger
in Health Reform
Ignore this thread
Well Look What We Have Here! (Health Care Scams)
 

I'll be damned.

Dozens of midpriced items were embedded with similarly aggressive markups, like $283.00 for a “CHEST, PA AND LAT 71020.” That’s a simple chest X-ray, for which MD Anderson is routinely paid $20.44 when it treats a patient on Medicare, the government health care program for the elderly.

More than a 10x -- that is more than 1,000% -- mark-up.

You'll find dozens of examples in this article.

You'll also find documentation that so-called "non-profit" hospitals make plenty of profit -- they're just prohibited from distributing it to shareholders.  Multi-million dollar salaries, on the other hand, are just fine.

Further, the essential purpose of a non-profit must be to operate for some charitable purpose.  You will find single-digit percentages of operating income that are in fact "donated", including those alleged "compassionate use" claims from pharmaceutical firms. 

While pharmaceutical companies are for-profit companies, the supposed non-profit hospitals and networks are another matter.

Again folks, as I have argued, if your medical bills were 1/10th or 1/5th of what they are charged at today, you could probably pay them in cash.

Further, I wish to quote the following:

Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal. Every person who shall make any contract or engage in any combination or conspiracy hereby declared to be illegal shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding $100,000,000 if a corporation, or, if any other person, $1,000,000, or by imprisonment not exceeding 10 years, or by both said punishments, in the discretion of the court.

What do you call a practice that is universal among the participants in a given market where the person who is buying not only has the price actively concealed from him or her before the fact but worse is unable to negotiate in many cases due to exigent circumstances (e.g. a perceived or obvious heart attack!)

Of course we have plenty of exceptions and simple refusals to prosecute when it comes to these firms and industries. 

It's not an accident.

You're being robbed outright, and now it's in the "mainstream media."

Oh, and Obamacare?  It further institutionalizes these practices by forcing you to participate and have your money stolen.

For how long will you sit back and tolerate this sort of outright theft in an amount that aggregates to nearly three trillion dollars annually, undertaken with the full permission and active participation of the United States Congress, the Administration and the States as well?

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User Info Well Look What We Have Here! (Health Care Scams) in forum [Market-Ticker]
Medicdan
Posts: 8027
Incept: 2010-02-11
Green
Scottsdale, AZ
Online
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Scorpion anti venom anyone? It's on sale this week. smiley

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Arizona & desert gardening
http://azediblegarden.com/
Tickerfan
Posts: 2848
Incept: 2008-01-02
Silver
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Has the restraint of trade issue ever been litigated?
Etz
Posts: 13890
Incept: 2007-06-26
Silver
LA
Online
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lol. Someone forgot to contribute to Obozo's re-election campaign.

http://www.cbsnews.com/8301-505266_162-5....

From 2009 to 2012, government auditors found The SCOOTER Store overbilled Medicare by as much as $108 million.

Bulldoze and get them to get the paperwork done.



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Legal chicanery and beneficent darkness are the banker's stoutest allies - F.Pecora.

Swampwoman
Posts: 375
Incept: 2009-12-06

NE Florida
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I advised daughter to get itemized bills and go over her medical bills with a fine-toothed comb because I had found mistakes and overcharges in just about every account I examined at some hospitals. She did not believe that her hospital and/or her doctor's office would rip her off. Ha! She found several THOUSAND dollars' worth of overcharges and charges for services she did NOT receive, as well as payments that she made that were not credited (luckily, she made them by check). And this was for a C-section birth for a young couple without insurance that were self paying.

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“A body of men holding themselves accountable to nobody ought not to be trusted by anybody." --Thomas Paine
Anti
Posts: 4300
Incept: 2007-10-09
Silver
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Some years back, the Wall Street Journal published an article about MD Anderson badgering a woman at her bedside for payment of some medical bill. The woman in her mid-fifties IIRC had prudently bought insurance to protect a few assets. Not good enough for MD Anderson. Their bedside manner: Sell those off and pay up!


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Health is better than health insurance
http://gerson.org/
Over the past 60 years, thousands of people have used the Gerson Therapy to recover from so-called “incurable” diseases such as cancer, diabetes, heart disease and arthritis.
Bontly
Posts: 186
Incept: 2008-10-31

Detroit
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Bailouts unconstitutional
Open borders unconstitutional
Libyan war unconstitutional
Undocumented President unconstitutional
Gun control unconstitutional
NDAA unconstitutional
Obamacare unconstitutional

Barry petroleum up 17% BRY Yeah were gonna need lotsa jelly! 340 million holes to drill.

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If you know what you are doing you are half way done.
If you want what you have you will always have what you want.
Bontly
Posts: 186
Incept: 2008-10-31

Detroit
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The excess of liberty, whether in States or individuals, seems only to
pass into excess of slavery.
Yes, the natural order.
And so tyranny naturally arises out of democracy, and the most
aggravated form of tyranny and slavery out of the most extreme form of
liberty?
As we might expect. (AGAIN)

Plato

(The Republic 360 B.C.E.)
(Founding Great Grand Father)

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If you know what you are doing you are half way done.
If you want what you have you will always have what you want.
Mezzmor
Posts: 1175
Incept: 2008-10-09
Green A True American Patriot!
Off the grid
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In my head I have already mapped out the simple law and the technology to immediately fix this problem. There is a very sinple fix to this entire issue.

Thanks for the pointer to this article - I generally never read that rag but this is an unexpected excellent piece of journalism out of what is typically a sewer.

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Once the "Progressive" and the "educated" have completely destroyed the country, the logical, the wise, and the experienced will rebuild it.
Drb
Posts: 195
Incept: 2011-01-02

TX
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The most interesting there is that overcharging hospitals are NONPROFITS. May be it would be advisable that ALL nonprofits have limit for maximal wage (lets say, equal to US Presidential salary, ca. 400K) or lose their nonprofit status. Same should apply to public universities and charities.
Mannfm11
Posts: 3551
Incept: 2009-02-28
Gold
DFW, Tx
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Mom went to MDA for an evaluation. Never checked in. The bill came a couple of weeks ago. Over $25K.

A friend told me about a drug that was effective against cancer. It was a anti parasite drug. Looked it up. Sure enough there was solid information it was effective against melanoma and non small cell lung cancer. The manufacturer quit making it. Imagine that! Are we being scammed by operation pink and all the other bull****?

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The only function of economic forecasting is to make astrology look respectable.---John Kenneth Galbraith
12bolt
Posts: 159
Incept: 2009-08-24

Blueridge
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Quote:
Are we being scammed by operation pink and all the other bull****?


I take it this is a rhetorical question?

:)
Crzymorse
Posts: 1195
Incept: 2010-06-25

Maryland
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This article is seven years old, it will give you a better idea how the scam works.

http://www.nytimes.com/2005/07/18/nyregi....
Nickdanger
Posts: 39
Incept: 2011-06-12

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Just think how many jobs would be lost if the orgs that depend on donations to fund them went under because actual causes and cures for cancer were made public. Not to mention the millions of sick-care providers.

There is validity to the parasite/fungus cancer connection. There are also studies that implicate certain viruses to be a contributing factor, along with environmental aggravations. Cut, burn, and poison are not generally beneficial except to the ones performing the procedures, but HIGHLY PROFITABLE.

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Suppose you were an idiot, and suppose you were a member of Congress; but I repeat myself.
--Mark Twain
Bontly
Posts: 186
Incept: 2008-10-31

Detroit
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My friend uses a sleep apnea mask at night. He wore his out so his doctor ordered one for him. He found out his insurance was charged $495 dollars for the same exact mask they sell online for under $65. He actually called the insurance company to report fraud. After wasting 45 minutes and being treated like a lunatic he gave up on his little crusade. And it was just the mask the doctors bill was separate.

And I thought golf was the greatest game ever played.

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If you know what you are doing you are half way done.
If you want what you have you will always have what you want.

Flappingeagle
Posts: 1229
Incept: 2011-04-14

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Quote:
You'll also find documentation that so-called "non-profit" hospitals make plenty of profit -- they're just prohibited from distributing it to shareholders. Multi-million dollar salaries, on the other hand, are just fine.[\q]

Thank you for saying that. The management keeps all the profits for itself and when things go south they get a bailout becuase they are a non-profit providing a needed service.

Just another 360 scam.

Flap

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Here are my predictions for everyone to see:
S&P 500 at 320, DOW at 2200, Gold $300/oz, and Corn $2/bu.
"You can't build a house of cards on a shaking table." - Tony Johns
The January 2015 AMZN put at $130 (cost $4.25) will be a winner.
Bontly
Posts: 186
Incept: 2008-10-31

Detroit
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Here's another one that had me just shaking my head. My sister works at a major hospital here in Detroit. There was a elderly lady and her son visiting her husband. He had been admitted earlier. After visiting her husband she falls down complaining of typical heart attack symptoms. The staff at the hospital would not help her. They told the son an ambulance has been called. All this to transfer her down three floors to ER. My sister didn't have any other details like how long it took or how it turned out she was like you haven't heard anything yet. Tip of the iceberg there.

I guess there are good legal reasons but where does this end?

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If you know what you are doing you are half way done.
If you want what you have you will always have what you want.
Genesis
Posts: 130787
Incept: 2007-06-26
Admin A True American Patriot!
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Either with prosecutions and massive reform or a civil war.

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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Asimov
Posts: 104047
Incept: 2007-08-26
Gold
East Tennessee Eastern Time
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Yea and only one of those three seems likely at this point.

My only hope is that it turns out as good as it did last time - which seems rather unlikely, historically.

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It's justifiably immoral to deal morally with an immoral entity.
If you trade based on what other people say, you will lose money. Especially what I say. I won't be held responsible. Festina lente.
Jack_crabb
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Gold
Peoples' Republik of Maryland
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Asimov wrote..
My only hope is that it turns out as good as it did last time...


I'm thinking we might be better off if the secession had succeeded.

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Molon Labe

Where is Henry Bowman when you need him?
Bontly
Posts: 186
Incept: 2008-10-31

Detroit
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Just think my grandfather got through the Bolshevik Revolution he almost starved to death. Talk about a guy who didn't waste food or for that matter anything else. I still have a knife he made from a file and a piece of leather. Ill admit I'm not half the man he used to be. But I'm still... Strong like bull! LOL

I started off with nothing and I still have most of it.

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If you know what you are doing you are half way done.
If you want what you have you will always have what you want.

Vernonb
Posts: 398
Incept: 2009-06-03
Silver
State College, PA
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Not for profit? smiley What a load of crap.

One of the most incestuous relationships I have ever had the displeasure to observe are glorified hospitals, disease treatment centers, and the pharmaceutical companies creating new drugs by working hand in hand.

You'd think doctors would care about their patients. The problem is that many of these doctors from the same hospitals/treatment centers sit on the boards of these pharmaceutical companies. They want the money and the health/safety of the public be damned.

These bastards are so intellectually arrogant they refuse to pay attention to the fact the death rate of a drug was far outside of the statistical norm during stage II testing.

Instead they make excuses using the public as lab rats to advance their profit potentials.
==================

As far as hospital staff competence my grandfather suffered a stroke in the 70's.

Because he was still able to walk shuffling into the ER the nurse got*****ed off that he didn't use the wheelchair and refused to immediately admit him. He died 4 hours later in the waiting room. My grandfather was a towering picture of health till that fateful day.




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"The welfare of the people in particular has always been the alibi of tyrants, and it provides the further advantage of giving the servants of tyranny a good conscience.”
-Alber Camus (1913-1960)
Chirorn
Posts: 21
Incept: 2013-02-13

Wisconsin
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Another example....
Yesterday I was talking to a lady who had to pay for support hose she got from her Dr. after they were billed to her ins. co. but not covered - $120.00. They are the same brand I buy online for myself, family, and an elderly neighbor for $25 or less (discount with quantities).
Oldno7
Posts: 2141
Incept: 2008-11-14
Gold
RECALL STATE USA
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Quote:
My friend uses a sleep apnea mask at night


Not a bad way to go. They wanted me to take the test but I said screw it because if I die in my sleep so be it. I feel like I am cheating the system. YES.

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IT'S THE SPENDING STUPID The US must become less a government of men, and more a government of LAW.
When people lose everything and have nothing left to lose they lose it -Gerald Celente
Grumpygirl
Posts: 2859
Incept: 2008-09-18
Gold A True American Patriot!
Oregon
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Quote:
Hospital finance people argue vehemently that Medicare doesn’t pay enough and that they lose as much as 10% on an average Medicare patient. But even if the Medicare price should be, say, 10% higher, it’s a long way from $11.02 plus 10% to $157.61. Yes, every hospital administrator grouses about Medicare’s payment rates — rates that are supervised by a Congress that is heavily lobbied by the American Hospital Association, which spent $1,859,041 on lobbyists in 2012.

Seriously, if out of pocket costs were 20% higher than what Medicare reimburses for, I would easily be able to afford all the non-catastrophic medical procedures I have to have.
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