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From: ark@alice.UUCP (Andrew Koenig)
Newsgroups: net.politics
Subject: Re: The medical industry is not regulated?
Message-ID: <3381@alice.UUCP>
Date: Tue, 12-Feb-85 17:39:45 EST
Article-I.D.: alice.3381
Posted: Tue Feb 12 17:39:45 1985
Date-Received: Wed, 13-Feb-85 04:28:57 EST
References: <243@mhuxr.UUCP>
Organization: Bell Labs, Murray Hill
Lines: 36

>> = me
> = Marcel Simon

>> Marcel Simon claims the medical industry is not regulated.
>> That claim is simply false.  If you doubt me, try setting
>> yourself up a medical practice without government permission.
>> Or try to buy a drug that the government doesn't like,
>> such as Laetrile.  Or even one that they do, such as
>> penicillin.
>> 
>> Or consider that the government will permit only one surgeon
>> to implant artificial hearts.  Or consider the government's
>> increasingly active role in mandating hospital accounting systems.

> What I meant, and did not make sufficiently clear, is that the medical
> industry's FEES are not regulated. This contrasts with, say, Canada
> Britain and other countries. Note the howls of protests from the
> medical industry against the government's efforts to impose
> some regulations on medical costs, in an effort to reduce the cost
> of medical insurance for all and for the government in particular
> (medicare)

The claim that medical fees are not regulated is also false.  While
the government does not set doctors' fees directly (yet), those fees
are kept artificially high by government regulations that make it
artificially difficult for people to become physicians.  Specifically,
one needs a license to practice medicine.  In order to qualify for that
license, you must go through a government-approved course of study.
Since the people who determine the nature of that course of study
are all license-holders themselves, they have a vested interest
in making it as difficult as possible for others to obtain their
licenses, so as to minimize competition.

Restrict supply, and up goes the price.

This restriction would not be possible without government collaboration.