I think this story from JS Online should pretty much put an end to any pretense that our health care system bears any resemblance to a free market economy.
An elderly woman underwent hernia surgery and had to stay overnight for observation. She was already required to take certain medications and, therefore, had the necessary supplies. However, the hospital refused to allow her to take her own medications during her stay; charging her the inflated in-house rates for the medications. Her medication bill included $16 for four acetaminophen tablets (that’d be Tylenol), $4 for a single multiple vitamin, $49 for two breast cancer tablets that Walgreens sells for $9.93 each when purchased in a 30-day supply, and $13.98 for an antacid tablet that sells for $1.27. She also was charged $258 for an asthma inhaler that costs $42 at Walgreens.
Meanwhile, Medicare only pays for prescription medicines for patients who are “admitted,” but not for patients who are merely “checked in for observation.” Regardless of the status, however, patients are not allowed to bring in medications they have already purchased themselves.
One hospital administrator justified the practice of jacking up the prices for in-house drugs by noting that the hospital loses money on Medicare and Medicaid patients and, therefore, has to make up the costs elsewhere, such as from the uninsured or from those covered by commercial insurers.