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The Economics of Hospital Bills UAE Medical Insurance PO Box 113048, Abu Dhabi, UAE. +971 04 279 3800
It has always been easier to explain the breakdown of a car’s depreciation and resale value than to delve into the factors that make healthcare costly. The large expenses brought about by hospital services are not just an issue confined to a particular area; it is a universal problem. Based on the improvements and breakthroughs in the medical field, it is alarming that the costs of health services are just about to get costlier. Things will get worse if people have no health insurance. Below are some insights that will help patients understand why healthcare requires them to shell out a large sum of money.
Technology As medical practices use more advanced technologies, chances are the costs of services will rise. Doctors and healthcare workers may undergo training on how to use modern equipment, which mean costs on the part of the hospital. One should also note that the hospital increases the costs because it needs to recuperate from all the expenses incurred by the use of equipment.
Unnecessary Charges Hospital bills are costly because some practices charge their patients for procedures that have hardly been performed or equipment that wasn’t actually used. If one looks at the breakthrough of expenses, he may see that the use of a wheelchair or extra hour in the recovery room means ka-ching! on the part of the hospital.
Doctor’s Labour Of course, most doctors will not lead a well-off lifestyle if they are not paid with hefty pay checks. Without health insurance, patients will be compelled to pay more. Those who have insurance but use the services of a doctor not covered by the network may suffer. These are only some of the reasons hospital bills are costly. Patients who seek transparency should be open with their doctors or with their insurance providers.
SOURCES: http://abcnews.go.com/blogs/health/2013/11/20/sticker-shockinvestigating-the-high-costs-of-hospital-bills/ http://www.uta.edu/faculty/story/2311/Misc/2013,2,26,MedicalCos tsDemandAndGreed.pdf http://www.uae-medical-insurance.com/