Tuesday, October 25, 2011

This is Amazing - Hospital Bill From 1960

One of my favorite bloggers, Dr. Paul Hsieh (We Stand Firm), posts a Hospital Bill From 1960 saying: "One of my friends just sent me this copy of a hospital bill from 1960. This was for a relative of hers who had delivered a baby..." It shows that delivering a baby in 1960 cost $230. 

This example demonstrates the devastating effects of general dollar inflation combined with medical inflation due to government intervention in the health care market. Dollar inflation is due to the massive creation of dollars not backed by hard assets like gold and silver and raises the price of everything more than otherwise.  Medical inflation, which has outpaced even dollar inflation, is due to government intervention in the health care market which takes many forms. For example, the government creates incentives and mandates for employers to sponsor heavily regulated and uneconomical third party payer programs.

His website is a great resource for advocates of free market health care or anyone trying to understand the causes and solutions to the government caused health care crisis.

1 comment:

Realist Theorist said...

Amazing. The general CPI-U has gone up 7.7 times since 1960. Even applying that multiplier, we'd get:

Hospital (5 days, $162 per day) = $800
Newborn care (5 days, $70 per day) = $350
Routine special services = $70
Delivery room = $350
Anesthesia = $190
Telephone = $8

for a total around $1700

It would be interesting to break-down the cost of a modern normal pregnancy and see where the costs have really exploded.