Dr. Alan Preston Offers Cogent Perspective on Favored Nations Contracts

Bill, I read Lisa’s article  (See Post below) and she did a good job on the major points.   I enjoy the blog.

By the way, The Michigan BCBS which was sued for “anticompetitive” behavior is one of the most outrageous suits I have seen.  This is how commerce works all over the world. If you  want to buy something in volume, you will ask the seller for a volume discount.  BCBS asked the hospitals for a volume discount.  That is as American as apple pie and motherhood.  There is a seller and a purchaser to all transactions.  The government decided not to sue the seller of the services at a discount, they decided to sue the purchaser for asking for a discount in exchange for buying a volume of services.  WOW…that is simply un-American.  Consumers could be sued for buying at a discount when they purchase a volume of goods or services…What country is this?   I was under the impression I lived in the United States of America where capitalism thrives and is supported by our government.  I must have been in a coma, because when I awoke and read this in the WSJ, I thought I was transported to some other country that hates the idea of capitalism.  Why did the seller agree to discount there services if they felt it was “anticompetitive”?  Maybe the government should sue the hospital as well.  While they are at it, maybe they can sue the patient for getting sick in the first place!

My thoughts as always.  Thank you,

 Dr. Alan M. Preston

Alan M. Preston, MHA, Sc.D.

Healthcare Policy, Biostatistics, Epidemiology

 Editor’s Note: Dr. Preston has been CEO of four different Managed Care Payors, CEO of a large Multi-Specialty Physician Group with primary care clinics, an outpatient surgery center, physical therapy, occupational medicine, radiology, and urgent care. Dr. Preston periodically teaches and is adjunct professor at the University of the Incarnate Word, San Antonio.

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