Skip to content
  • About
  • Contact
  • Contribute
  • What Physicians Say
  • My Book
  • Careers
  • Podcast
  • Speaking
KevinMD.com — Social media's leading physician voice
  • All
  • Physician
  • Burnout
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • All
  • Physician
  • Burnout
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
    • All
    • Physician
    • Burnout
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • About
    • Contact
    • Contribute
    • What Physicians Say
    • My Book
    • Careers
    • Podcast
    • Speaking
KevinMD.com — Social media's leading physician voice
  • All
  • Physician
  • Burnout
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
    • All
    • Physician
    • Burnout
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • About
    • Contact
    • Contribute
    • What Physicians Say
    • My Book
    • Careers
    • Podcast
    • Speaking
  • About Kevin Pho, MD, Founder of KevinMD
  • Aging and dementia: what physicians say, in their own words
  • Artificial intelligence: what physicians say, in their own words
  • Be heard on social media’s leading physician voice
  • Cancer: what physicians say, in their own words
  • Children’s health: what pediatricians say, in their own words
  • Contact Kevin
  • COVID-19: what physicians wrote as it happened
  • Custom enhanced author page pricing
  • Diabetes and obesity: what physicians say, in their own words
  • Direct primary care: what physicians say, in their own words
  • DMCA Policy
  • End of life: what physicians say, in their own words
  • Establishing, Managing, and Protecting Your Online Reputation: A Social Media Guide for Physicians and Medical Practices
  • GLP-1 drugs: what physicians say about Ozempic and its successors, in their own words
  • Heart disease: what physicians say, in their own words
  • Immigration and medicine: what physicians say about immigrant doctors and immigrant patients, in their own words
  • KevinMD influencer opportunities
  • Medical errors: what physicians say, in their own words
  • Medical ethics: what physicians say, in their own words
  • Medical malpractice: what physicians say, in their own words
  • Medical school: what students and physicians say, in their own words
  • Mental health: what psychiatrists and physicians say, in their own words
  • Nursing: what nurses and physicians say, in their own words
  • Opinion and commentary by KevinMD
  • Opioids: what physicians and pain patients say, in their own words
  • Physician burnout speakers to keynote your conference
  • Physician burnout: what physicians say, in their own words
  • Physician Coaching by KevinMD
  • Physician keynote speaker: Kevin Pho, MD
  • Physician personal finance: what physicians say about their own money, in their own words
  • Physician Speaking by KevinMD: a boutique speakers bureau
  • Physician suicide: what physicians say, in their own words
  • Physicians and administrators: what physicians say about who runs medicine, in their own words
  • Primary care physician in Nashua, NH | Kevin Pho, MD
  • Primary care: what physicians say, in their own words
  • Prior authorization: what physicians say, in their own words
  • Privacy Policy
  • Private equity and corporate medicine: what physicians say, in their own words
  • Race and medicine: what physicians say, in their own words
  • Recommended services by KevinMD
  • Residency: what residents and attendings say, in their own words
  • Scope of practice: what physicians, nurse practitioners, and PAs say, in their own words
  • Subscribe to the KevinMD enhanced author page
  • Subscribe to the newsletter
  • Surgeons and surgery: what surgeons say, in their own words
  • Take-home messages: what physicians say when asked to leave one
  • Terms of Use Agreement
  • Thank you for subscribing to KevinMD
  • Thank you for upgrading to the KevinMD enhanced author page
  • The electronic health record: what physicians say, in their own words
  • Vaccines: what physicians say, in their own words
  • Violence against health care workers: what physicians and nurses say, in their own words
  • What physicians say: the KevinMD records
  • Women in medicine: what women physicians say, in their own words
  • Women’s health: what physicians say, in their own words

Can independent practices stay viable using price transparency?

Niran S. Al-Agba, MD
Health Policy
January 27, 2017
Share
Tweet
Share

The market for medical tourism grows as Americans increasingly seek medical care outside of the United States and pay cash for services.  Patients know they can obtain adequate quality care in Mexico for out of pocket costs far lower than their insurance plans with high deductibles would cover.  Posting basic outpatient visit and simple procedure prices could benefit our independent practices in the same way.  The only thing worse than not having health insurance, is having coverage be so expensive you cannot afford to utilize it when necessary.  It is like sleeping next to a chocolate cake every night while on a diet.

Mexico lags behind most Organization for Economic Co-operation and Development (OECD) countries in health status; however, they are the best in one significant category.  They have the lowest health care expenditures of all the OECD countries, making visitation of the free-market medicine “concept” worthwhile.  A majority of health care in Mexico is provided via private entities or private physicians. The private organizations operate entirely on a free-market system, less than 10 percent of Mexicans have health insurance, so most pay “out of pocket.”

My family spent a week in Mexico over Christmas and on the day we were due to fly home, my youngest son developed a very high fever.  Fever reducers were administered, and all was well until he vomited all over himself, his blankie, and the ground at the resort entrance.  By the time we arrived at the airport, he did appear a bit limp and lethargic.  “Is he sick?” the ticket agent asked.  “Not really,” I lied.   “Does he have a fever?” she asked.  “Not at this time,” I responded.  “You must be cleared by the physician at the airport before I issue your boarding passes,” she stated.  “Does it help that I am a pediatrician?” Nope.

Resigned to my fate, I waited in a quiet corner until a young physician and his medical assistant approached.  He introduced himself and asked me a few questions before suggesting an anti-emetic injection prior to the flight.  Needing to obtain a weight on my son, we followed him to the clinic, which looked like a mini-ER including two fully stocked treatment beds yet surprisingly no additional staff.  The physician gave him a quick shot on the rear (metoclopramide), filled out some paperwork, and handed me my copy of the encounter including an itemized bill:  300 pesos for the visit and 100 for the injection.  I paid him in cash, approximately $20 USD.

As he escorted us back to the airport waiting area, we shared some frustrations about our respective careers.  He told me about a young child from the day before who was severely dehydrated to the extent he required significant fluid resuscitation.  Due to the child’s precarious hydration status, an IV had to be placed in his jugular in order to successfully deliver fluids.  This young general practice doctor had a wide repertoire of skills, despite access to little in the way of resources.

Which brings me to the point: I need a light, a stethoscope, and a pen to heal and comfort human beings; the rest is basically nonessential.  This Mexican physician and I fundamentally do the same thing every day; except he has no receptionist, no billing personnel, no manager, no administrator, no care coordinator, and definitely NO EMR in his emergency clinic.  He documented the visit in less than 3 minutes (like I do), signed it, and handed me the top page for my records.  His care was good, his skills were solid, and his decision-making sound; I would have treated any other child the same way.

From an economic standpoint, there are two basic approaches to any service-oriented occupation.  The first is, “How much revenue can be generated?”  The second is, “How can one deliver quality for a reasonable price?” It is slowly dawning on misguided health economists that the former method is outrageously expensive.  The latter, a free-market system, is efficient, effective, and helps control cost, but there are fewer kickbacks available for the cartel of healthcare administrators and government lackeys that way.  The free market discourages waste and ensures both physicians and patients are mindful of expenditures, which is supposed to be the goal, right?

85 percent of medical problems can be handled in a private clinic or a direct primary care (DPC) setting, and 70 percent of surgeries can be handled in an outpatient ambulatory surgery center, yet our government preferentially backs large hospital practices employing physicians and subsidizing their expensive surgical suites.  Health care expenditures rise by the day, yet physician compensation has been relatively flat over the last few decades.  The increasing cost is due to the assorted “add-on fees” for large institutions, which should affectionately be called “administrator, manager, or IT surcharges.”  This is the reason parents are charged $39.35 to hold their newborn infant after delivery at the hospital.  In my office, it is totally free to hold your own newborn.  What a great deal!

Physicians should post prices for general well and sick visits, basic procedures, and other regular services when feasible, allowing patients to make better-informed decisions.  A business that provides value to the consumer will undoubtedly thrive.  The larger the physician repertoire, the more a consumer reaps the benefits of your expertise, and the busier the practice becomes.  Private specialty care could be provided in this straightforward, streamlined way as well.   Patients are clearly willing to travel outside the country for good quality medical care at a pre-defined cost, so why not walk across the street from the large hospital waiting room to an independent physicians’ office?

Free-market medical care encourages healthy competition; which is bad for the “administrators” and “managers” but very good for patients and physicians.  Domestic medical tourism could grow as informed consumers are able to search for the right quality at the right price.  My recent brush with free-market medicine is a beacon of light for how simple medicine used to be.  If independent private physicians come out of the shadows and into the light, embrace price transparency where feasible, then larger institutions will never be able to compete with us.  Now, what exactly are we afraid of?

Niran S. Al-Agba is a pediatrician who blogs at MommyDoc.  

Image credit: Shutterstock.com

Prev

Misophonia and suicide: Sound thinking is required

January 26, 2017 Kevin 0
…
Next

Being an oncologist is a privilege, even if it's sad

January 27, 2017 Kevin 0
…

ADVERTISEMENT

Tagged as: Medicare

< Previous Post
Misophonia and suicide: Sound thinking is required
Next Post >
Being an oncologist is a privilege, even if it's sad

 

ADVERTISEMENT

More by Niran S. Al-Agba, MD

  • Is there hope for COVID with home visits?

    Niran S. Al-Agba, MD
  • A tale of two epidemics: COVID and obesity

    Niran S. Al-Agba, MD
  • Delivering health care at a retail clinic isn’t something to be proud of

    Niran S. Al-Agba, MD

Related Posts

  • At the top of patients’ wish lists: price transparency

    Miranda Gill, MSN, RN
  • Primary Care First: CMS develops a value-based primary care program for independent practices

    Robert Colton, MD
  • The burden of essential business: How independent pharmacies are struggling to stay open

    Palak Patel
  • Are generic drug price hikes media hype?

    Peter Ubel, MD
  • Welcome to the new normal: practices of 500 physicians or more

    Peter Ubel, MD
  • The quandary of cost transparency

    Ted Matthews, MBA

More in Health Policy

  • The next child

    Medicaid managed care and the case for mutual stewardship

    Steven Merahn, MD
  • How to build a dementia care pathway, not a referral sheet

    Gerald Kuo
  • AI in prior authorization: 3 contract questions for 2027

    Matt Hasan, PhD
  • Private equity in medicine did not kill private practice

    Brian Hudes, MD
  • Why are fewer family physicians delivering babies?

    Frista Gradica
  • Local news and public health: the segment viewers missed

    Ronald L. Lindsay, MD
  • Most Popular

  • Past Week

    • Retirement isn’t the end of medicine, it’s a second act [PODCAST]

      The Podcast by KevinMD | Podcast
    • The conflict of interest that discloses as nothing

      Martha Rosenberg | Medications
    • 4 fibromyalgia myths the current evidence doesn’t support

      Kayvan Haddadan, MD | Conditions and Diseases
    • Why exhaustion can make you see things that aren’t there [PODCAST]

      The Podcast by KevinMD | Podcast
    • AI governance in health care has to reach the exam room

      Amanda Heidemann, MD | Health Technology
    • The Pennsylvania measles outbreak and the cost of forgetting

      Christine King, CRNA | Conditions and Diseases
  • Past 6 Months

    • Why CDC opioid guidelines get the overdose data wrong

      Richard A. Lawhern, PhD | Conditions and Diseases
    • Retirement isn’t the end of medicine, it’s a second act [PODCAST]

      The Podcast by KevinMD | Podcast
    • Sensory processing in autism and the brain’s volume control

      Josette Pelatan, PhD | Conditions and Diseases
    • What maternity care deserts cost a town

      Manisha Kaliaperumal | Health Policy
    • Why medicine needs a national physician license now

      Vaishali Popat, MD, MPH | Physician
    • A cold cost $945. The cost of primary care is broken.

      Susan Newman, MD | Physician
  • Recent Posts

    • Why exhaustion can make you see things that aren’t there [PODCAST]

      The Podcast by KevinMD | Podcast
    • 3 reforms to counter wellness influencers in practice

      Farid Sabet-Sharghi, MD | Physician
    • Shift work and circadian rhythms shape the 24/7 workplace

      Deepak Gupta, MD | Conditions and Diseases
    • Paid for twice

      Physicians paid for G2211 twice. Most never bill it.

      Michael Duben, MD | Physician Finance
    • The next child

      Medicaid managed care and the case for mutual stewardship

      Steven Merahn, MD | Health Policy
    • Choosing a limb lengthening surgeon requires accountability

      Hrayr Basmajian, MD | Physician

Subscribe to KevinMD and never miss a story!

Get free updates delivered free to your inbox.


Find jobs at
Careers by KevinMD.com

Search thousands of physician, PA, NP, and CRNA jobs now.

Learn more

View 11 Comments >

Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

Social

  • Like on Facebook
  • Follow on Twitter
  • Connect on Linkedin
  • Subscribe on Youtube
  • Instagram

ADVERTISEMENT

  • Most Popular

  • Past Week

    • Retirement isn’t the end of medicine, it’s a second act [PODCAST]

      The Podcast by KevinMD | Podcast
    • The conflict of interest that discloses as nothing

      Martha Rosenberg | Medications
    • 4 fibromyalgia myths the current evidence doesn’t support

      Kayvan Haddadan, MD | Conditions and Diseases
    • Why exhaustion can make you see things that aren’t there [PODCAST]

      The Podcast by KevinMD | Podcast
    • AI governance in health care has to reach the exam room

      Amanda Heidemann, MD | Health Technology
    • The Pennsylvania measles outbreak and the cost of forgetting

      Christine King, CRNA | Conditions and Diseases
  • Past 6 Months

    • Why CDC opioid guidelines get the overdose data wrong

      Richard A. Lawhern, PhD | Conditions and Diseases
    • Retirement isn’t the end of medicine, it’s a second act [PODCAST]

      The Podcast by KevinMD | Podcast
    • Sensory processing in autism and the brain’s volume control

      Josette Pelatan, PhD | Conditions and Diseases
    • What maternity care deserts cost a town

      Manisha Kaliaperumal | Health Policy
    • Why medicine needs a national physician license now

      Vaishali Popat, MD, MPH | Physician
    • A cold cost $945. The cost of primary care is broken.

      Susan Newman, MD | Physician
  • Recent Posts

    • Why exhaustion can make you see things that aren’t there [PODCAST]

      The Podcast by KevinMD | Podcast
    • 3 reforms to counter wellness influencers in practice

      Farid Sabet-Sharghi, MD | Physician
    • Shift work and circadian rhythms shape the 24/7 workplace

      Deepak Gupta, MD | Conditions and Diseases
    • Paid for twice

      Physicians paid for G2211 twice. Most never bill it.

      Michael Duben, MD | Physician Finance
    • The next child

      Medicaid managed care and the case for mutual stewardship

      Steven Merahn, MD | Health Policy
    • Choosing a limb lengthening surgeon requires accountability

      Hrayr Basmajian, MD | Physician

Copyright © 2026 KevinMD.com | Powered by Astra WordPress Theme

  • Terms of Use Agreement
  • Privacy Policy
  • DMCA Policy
All Content © KevinMD, LLC
Site by Outthink Group

Can independent practices stay viable using price transparency?
11 comments

Comments are moderated before they are published. Please read the comment policy.

Loading Comments...