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Running your healthcare practice Learn how to market your practice better via internal and external marketing. TV, radio, direct mail, yellow pages. Manager your practice better by cutting costs and introducing efficiency.

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Old 12-26-2007, 10:39 PM
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Join Date: Dec 2007
Location: USA/Florida/Fort Lauderdale
Posts: 33
Default Traffic lights and health care administrative costs. Public vs. Private insurance

A few days ago I was driving home late at night . As I was approaching an intersection the light went red . I looked around to see if there were any other cars and I was the only car as far as I could see. I thought to myself - what a waste of my brakes, gas and time. I was tempted to drive through the intersection but didn't.

As I was sitting there, I realized that the red light went on to prevent accidents and allow bi-directional traffic regardless of the time of day. What I considered waste of gas, brakes and my time was the "cost" I was forced to pay for the traffic safety and ability to cross the intersection.

In other words - the light was programmed to perform regardless of how busy the streets were - sometimes causing "waste" and in most cases helping with the flow of traffic.

The same principle works with our health care administrative costs. Medicare ( government ) always gets a "green light" and so the cost is always low, but when private companies engage in the market, they sometimes have a green light and sometimes red - causing administrative costs to go up quite substantially.

I hope I am not the only person thinking about health care costs as I am driving home....
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Health Care Administrator
Fort Lauderdale, Florida 33305

FIPD - Health Care Cops ( Financing, Insurance, Payment, Delivery )
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