First the good news:  if physicians receive cash rewards for reducing overall hospital costs, they reduce overall hospital costs.  Amazing. 

Now, the bad news:  except for a handful of cases – receiving special dispensation from the federal government – this practice is illegal everywhere else.  (Meaning, you-could-go-to-jail illegal.)

A woman diagnosed with leukemia is sent to M.D. Anderson Cancer Center in Houston, according to a Wall Street Journal story:  

• She is told she can have an appointment only if she brings a certified check for $45,000.

• But the $45,000 covers only lab tests. For an admission for actual treatment, the hospital demands $60,000 more.

• A nurse refuses to change the chemotherapy bag in her pump until her husband makes another payment.

• While she is sitting on an exam table awaiting a doctor, a hospital administrator argues with her about money.

• She is charged $360 for blood-tests most insurers pay $20 or less for; $120 for saline pouches that cost less than $2 retail; and $314 for a penis clamp (to control incontinence), although she has no penis.

Since M.D. Anderson is nonprofit, it pays no taxes.  It has a $1.88 billion endowment and netted $310 million in income (profit) last year.  Contributions are tax deductible. 

A new Dutch study finds that even though obese people die earlier than their thinner, fitter cohorts, their lifetime health costs are lower ($371k vs. $417k).  The healthy folks eventually die of something – cancer, Alzheimer's, etc. – and run up higher lifetime medical bills.

News of this study caused me to miss not a single step in my otherwise untroubled life.  But all those nosy Parker paternalists who want to pry into every aspect of our lives and order everybody around must be unnerved.  Fat taxes are out.  Fat subsidies are in. 

[Psst.  Don't tell a soul.  Researchers got the same results for smoking (only $326k).]