Have you visited a MinuteClinic or other retail health clinic?  This approach to health care is transparent (prices clearly posted and generally cheaper than physician visits), convenient (located in a pharmacy or other retailer), and customer-friendly (walk-in appointments easy to find).

So why are these clinics, which customers love, struggling?

The answer is surprisingly simple: Medicare (and by proxy, other health insurers) have created a payment system that starves innovators because:

  1. they can’t charge more for providing better service
  2. there’s no reward for customers who select a cheaper service
  3. they can’t even bill customers for innovations that achieve better results and reduce the need for further services

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