Saturday, August 28, 2010

No wonder health care costs are high

Opened all my junk mail this morning. It burns better if you open it before pitching in the fireplace. One piece was pushing hearing aids. It was in-the-ear and had some decent features like background noise cancellation, and feedback squeal reduction. They wanted $1095 for it. They bragged that this was a bargain, comparable units from the competition were going for $2400, they said.
I used to design stuff like this for my day job. I know I could achieve this performance with $100 worth of parts. Using the industry rule of thumb of "four times parts" I could assemble and test and ship something like this for $400 and make money.
I think patients are getting over charged by better than 100% here.
Maybe I should come out of retirement and get into the business.

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