The reason this works is because is that the U.S. hospital costs are overpriced and the doctor’s fees are underpriced.
In the end everyone wins because overall price for patient is less and quality is preserved. Here we gave an example of free market prevailing over a market distorted by overrgulation.
The 2 major reason for high hospital prices are government regulation and litigation, with regulation as the chief burden by far. The regulatory costs in healthcare are disgusting because federal government takes a predatory approach to regulation. The regulation only adds cost and does not have any positive effect on patient safety. In fact much of the regulation detracts from safety because of the numerous delays and denials of care.
A trusted doc of this family contends that you STILL get what you pay for in medicine - anywhere in the world.
One additional reason why hospital costs in the US are so high, is they are forced to give service to people who don’t pay. That means that they have to charge the people who DO pay extra.
You left out one big factor. The illegals that wind up in the ER with an infected cut, the flu or some other thing and can’t pay, the hospital passes that on to everyone that does pay.