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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: Lhn5 who wrote (8093)	4/18/2006 2:49:11 PM
From: ahhaha	Read Replies (1) \| Respond to of 24758

I don't agree. To me risk management is to decrease the potential volatility of costs but at probably a higher fixed cost than what the average cost would be over time if risk is not managed. ? Risk management tries to minimize expected costs. That doesn't happen at higher fixed cost. Minimization of expected costs often entails higher variable cost. It's like the gambling game, Blackjack, where one is willing to incur losses over the short run to realize a slightly positive expected return over the longer run. One has to incur higher fluctuations in cost in order to discover new regimes of efficiency often coming from a variable cost increment coming from an investment in capital equipment or its equivalent. In this case the cost of changing a health care program may be cheaper over the longer run. The risk management program was not cost effective. It didn't save any money. All the procedures were approved. So what's so objectionable about trying a measure that reduces costs, but later is discovered not to work? Well just take it for whatever you think it is worth. It's your insurance. This line of reasoning was based upon someone who accepts whatever insurance their company provides? This is based on your reasoning and specifically covers the incidence of choice. Well I never said defraud. Then what were you implying? I just think these entities exist because the entities in control think the middlemen, rubber stampers, etc, do more good than they actually do. This presumption implies the fraud. The only situation I can think of where such entities are useful are for expediting treatment and discharges for inpatients. For inpatients, it is in the middlemen's interest to make care as effective and efficient as possible to minimize hospital stays, so here the motivations are often in sync with the patients best interests as well. Funny how that works. I think you'll find that at all intermediary steps, the service provided is critical, and this discovery would restore some confidence in you about how things work. This "middlemen" are invented. Their existence evolves over time. There may be a better way than what has evolved, but that takes risk management and experimentation to discover.