The goals of Prop 8 sound good: better patient care and lower costs. Basic economic theory suggests that artificially regulating prices lower leads to shortages. We cannot force the current dialysis clinics to become nonprofit organizations. Just like large retailers close under-performing brick and mortar stores, I would expect no less from the CEO of a dialysis company to close those locations whose primary insurance payer were on the lower end of the reimbursement scale such as Medi-Cal or Medicare.
The initial response from insurers to meeting the MLR underscores how flexible these companies can be to altering their business practices to meet government regulations.
Folks, please look at what you are saying and writing. You are implying that business is more important than the welfare of your neighbor. Really?
A 2005 study by the Commonwealth Fund showed that, “[L]abor time lost due to health reasons represents lost economic output totaling $260 billion per year.”