As price theory illustrates, it is always interesting to see how economics shifts buying patterns, or is it vice-versa?
In this case, instead of having surgery done locally, a client is flying over to a new hospital in New Delhi to have his operation done. Even after the flight is taken into consideration, both he and his company will save over $10,000.
And India is hardly a bastion of free-enterprise.
Rather it is simply that the costs of complying with government regulations of hospitals on this side of the Pacific have risen so dramatically that it is now cheaper to outsource health-care to such venues.
Oh and the little fact that the medical industry here is a highly regulated monopoly, with stiff barriers to entry also means that generally speaking, the established firms typically do not have to worry about competition, because where else are you going to go… India?
Thank you very much, come again.
Via LewRockwell.