Submitted by Taps Coogan on the 27th of April to The Sounding Line.
Legendary short seller Jim Chanos recently spoke with CNBC, warning about ‘rent-seekers’ in the US healthcare system.
Jim Chanos notes:
“Basically our view is that deflation is starting to take hold in various areas of healthcare and, in particular, we have been really concerned about the rent seekers, the people who have just been on the margin ripping off the system… Their business models involve, in some way, either deception or aggressive use of reimbursement that people don’t know. For example emergency rooms, there was an article about a company called Envision Health, which we are short,… and the New York Times had a study from a professor at Yale talking about surprise billing. You go to the emergency room, you sprained your ankle, and you get two bills, one from the hospital and the second one from the emergency room which is out of your network and you have to pay $8,000 or some crazy amount. People are upset about this, so upset about this that the largest payer of Envision Health, UNH… is suing them and put up an anti-EVHC (Envision Healthcare) website…”
There is more to the interview so enjoy it above.
As we discussed here, the US spends more than twice as much money per capita on healthcare compared to most other developed countries while experiencing a shorter life expectancy than most. This is, in no small part, a result of the endless layers of rent-seeking that have overtaken the industry.
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