The Monopsony Game

Book excerpt: America is number one in health care cost per capita and 38th in quality care. Statistically, Americans spend more money on their health care than anything else but food. But the consumption of the health care dollar is predominately not paid for by the consumer. The middlemen, so to speak, make the forces of free enterprise moot. Consumers are bystanders in the relationship between purchase and quality because they do not directly pay for the service or products. This phenomenon is called Monopsony. The consumer is not the buyer. But the buyer is almost singly dominant. This is the reverse of Monopoly where the seller has the last say. This is not Microsoft at work. It is the Federal and State Medicare and Medicaid programs that buy upwards of 75% of all health care service products. Under the Obama Nation Government will be the purchaser of last resort for all Americans. Due to the onslaught of the "baby boomers" both the Government run health care and the insurance industry will bankrupt America unless they learn how to Win the Monopsony Game. This book defines the problems and proposes common sense solutions.