Controlling exhorbitant prices of hospital procedures and doctor's fees

First, we need to develop a medical webservice that manages the hospital and doctor's appointments, rate the performance of them by the patients. The rating parameter will be mainly on recovery ( 2.5 points ), cost control ( 1.5 points ) and patient experience ( 1.0 points ) on a total scale of 5 points. The web service will take all the cost structure a patient gets without revealing patient's identity. Only patients and attendants of the patient can rate the treatment.

The process of putting a cap on the price a hospital or a doctor bills will be given below.

Step 1. Find all the hospitals which is rated top A% and above and take their minimum rating, which will be the standard to calculate further proceeding.

Step 2. Among those hospitals, find hospitals offering your area of treatment.

Step 3. Among those hospitals, find all the hospitals which has least pricing, covering 10% of patients in the hospitals rated R and above, catering your area of treatment.Take their average pricing.

Step 4. No hospital in that state charges L times that of that average least price, with proper explanations for exceptions to claim  L+ times. Only successful medical treatment can charge L or L+ times. Failures will be L- times.

This 1.5 point for least per patient will be based on who charges least and as long as other hospitals don't deviate from the least charged hospitals, they may get fair scores too.

Webservice will take into account these ratings for evaluating doctors for a minimum of P year period, no matter if they change hospitals or not. We will track them in every hospital.

Doctors working in that average least price hospitals, ( rating 4.5 and above, remember this rating includes not only the price, but also good results ) will be taxed less or no tax, during the period they serve in those hospitals. And may also given preferential treatments for higher studies in Medical universities. Because they are the best and ethical doctors, universities can provide.

We can divert all the Medical Aid renumerations spent by the government solely to top Medical Universities, going to deserving talented Medical Students. And to higher education fees for highest rated doctors.

High positions in American Medical Association will be held by 4.5 and above rated doctors.

As high the score of doctors in a hospital, more treatments with high criticality will be given to them.

Hospitals can give high salaries to doctors with high scores but not based on per patient expense. It will be like hospitals paying more to bring the cost of patients fees. This is capitalism at its best.

Controlling exhorbitant price of drugs in America

I am suggesting a method to control the exhorbitant prices of drugs and medical equipments in America. The idea is setting a maximum price on the drugs and medical equipments based on certain parameters and two pricing periods.

1st period : Recovery period

In this period, the drug companies and medical equipments manufacturers can set any price, till they recover two times the R&D they spent on finding drugs and medical equipments.

2nd period : Patent period

In this period, the price of the drugs and medical equipments should be based on four parameters.

1. Total money the company spends on all R&D, the more money you spend on R&D, the more points you gain, not withstanding breakthroughs you made or not.

2. The number of breakthroughs, the company has gained by spending on R&D, the more drugs you find, more the points.

3. The price the company spent on R&D on that particular drug or Medical equipment. More money spent, more points

4. The amount that is required to produce the drug. More amount to produce, more points.

Based on these parameters, we can set the maximum price, a company can sell their drugs and medical equipments. Government won't interfere in the number of pills you sell. It's just the points that will determine the maximum price of a single pill or a medical equipment.

Educational Reforms

1. Universities should form a collaboration with or complete take over by industries. There can be two types of Education centres. Research centres and Industry run universities. Research centres will give diploma and employ the students, by paying them salaries. Industry run universities may charge fees from students.

2. Big organisations like NASA can start a NASA lab and nurture school students and find their talents, which is the best way of evaluation. NASA should start a university, typically catering to the areas of their interest. Evaluated students from NASA lab will be given admission to these universities.

3. Universities can encourage entrepreneurship by having Venture Capitalists meet and getting 5% stake in the start-ups without investing. Research centres will not have this kind of meets.

4. Industry run universities should encourage full - scholarships for students, based on their talents, which will be profitable to these industries, no matter they start a new venture or not.

Steps to decrease income inequality

US government can make mandatory for large corporations beyond certain value to distribute a certain part of its shares to general public through equity or mutual funds (dedicated only to these large corporations, taking mutual funds route is highly recommended), restricting the sale to middle class and low economic class in equity or mutual funds. Companies, when reach the designated threshold should redistribute their shares to general public, may even give a preference to low income households, among those who apply for their shares initially and thereafter restrict sales to middle and low economic class. This will distribute wealth to the middle class and to a certain amount to low income households. The institutional investors can invest in startups and SMEs till it reaches the threshold and sell their shares thereafter. These investors will now invest in new ventures and companies which need investment, inturn rekindling economic activity, further generating growth in the US economy. Share prices may increase less to some extent, compared to earlier model, since we are restricting the sale of shares to people of middle and low income class, but organic growth will not be affected, which will bring profits to the middle class and the poor. All tricks like tax evading, showing losses like amazon does, anything big companies fathom does, will not affect the middle and poor class. It can only increase their wealth. This policy inturn will help solve the huge salary inequalities between top paid workers like CEOs to down the ladder workers. From the 1% to the 99%, without affecting the economy and the core principles of capitalism.