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To: John Carragher who wrote (183546)	2/26/2006 1:42:20 PM
From: Don Lloyd	Read Replies (2) \| Respond to of 186894

john, i have seen mri medical costs drop over the last 12 years. to point now it is a around a few hundred dollars under med coverage. prior it was substantial. seems insurance companies have been driving down these rates . it was on average close to $1500 when we first started with my contributions close to $400. now i see total insurance allowed is less than $500. I concur, except that I would assign a larger portion of the reason for the price decline to an increased number of competing MRI facilities and machines. Once the investment is a sunk cost, competition drives the prices down towards marginal cost. Groups of physicians may have invested expecting to be able to create their own demand by sending their own patients to their own facilities. I suspect that state regulation has dampened the realization of those expectations. Regards, Don