Cato Event Podcast

A quarter century ago, the Cato Institute released a revolutionary book, Patient Power: Solving America's Health Care Crisis, by John C. Goodman and Gerald L. Musgrave. Patient Power introduced the United States to a bold and radical way of thinking about health care.When third parties pay medical bills, Goodman and Musgrave wrote, providers come to view third-party payers as their customers, not the patients. As a result, instead of maximizing patient satisfaction, providers deliver care to maximize their revenue given third-party payment formulas. Instead of falling, costs rise. Third-party payment is the reason patients can't talk to their doctors by phone, email, or Skype. It is why patients don't have Uber-type doctor house calls at night and on weekends. Patient Power showed that if people controlled and managed their own health care dollars, the medical marketplace would change radically—almost overnight.Indeed, Patient Power changed the world. Thanks largely to Goodman and Musgrave's work, more