Hospitals routinely overprice products and procedures so steeply that some doctors find they can offer services dramatically more cheaply without going through insurance at all.

In "The Obamacare Revolt," Jim Epstein at Reason.com reports on how "Physicians Fight Back Against the Bureaucratization of Health Care." 

He tells the story of Dr. Lisa Davidson, who experienced "8 years of frustration while running a successful traditional practice in Denver, Colorado."

Epstein writes:

When she was operating a traditional practice, Davidson witnessed firsthand how our "payment plans for routine expenses" drive up prices and block innovation.

She recalls that one insurance company paid $118 for a routine PSA test. Now that her patients pay the bill directly, the cost is $18.

Insurance used to pay $128 for a bag of IV fluid. Now Davidson doesn't bother passing on the cost of IV bags because they run $1.50 each. . . .

"What people don't realize is that most doctors employ an army of people for coding, billing, and gathering payment," says Neuhofel.

"That means you have to charge $200 to remove an ingrown toenail." Neuhofel charges $50.

This approach to healthcare is called "Direct primary care." It includes "price honesty" and is making waves, according to this video report report titled "Oklahoma Doctors vs. Obamacare."

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