Quote of the Day: “The Reality Is All About High Prices”

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If there are lots of buyers of a service in a particular region but you’re the only supplier, you have a lot of leverage to charge high prices. Conversely, if there are lots of suppliers but you’re the only buyer, you have a lot of leverage to bargain prices down. In the healthcare world, hospitals are the suppliers and insurance companies are the buyers. So if there are only one or two hospitals in your region, then prices are likely to be high. Thus this comment about the trend toward consolidation of hospital chains:

“The rhetoric is all about efficiency,” said Karen Ignagni, the chief executive of America’s Health Insurance Plans, a trade group that represents insurers. “The reality is all about higher prices.”

Ignagni obviously has a dog in this fight, but she’s basically right. A 500-hospital chain might be more efficient than a 100-hospital chain. But it’s definitely able to charge higher prices.

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is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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