Freakonomics Radio

457. Is Dialysis a Test Case of Medicare for All?

17 snips
Apr 8, 2021
Ryan McDevitt, an economist at Duke University, and Jeff Gillian, a kidney specialist and chief medical officer at DaVita, dive into the controversial dynamics of the dialysis industry. They analyze how low Medicare reimbursement rates have pushed the industry toward profit-driven practices, often at the expense of patient care. The pair discusses troubling data on the consolidation of dialysis providers, ethical dilemmas in treatment decisions, and legislative challenges aimed at improving patient outcomes within a profit-centric system.
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ANECDOTE

Dialysis Duopoly

  • DaVita and Fresenius dominate the dialysis market, owning most clinics.
  • Over 30% of DaVita's stock is owned by Warren Buffett's Berkshire Hathaway, indicating its profitability.
INSIGHT

Dialysis Subscription Model

  • The dialysis business model resembles a subscription service, ensuring steady revenue.
  • Dialysis patients' reliance on treatment creates an attractive investment for firms like Berkshire Hathaway.
INSIGHT

Taco Bell Healthcare

  • DaVita's former CEO, Kent Thiry, aimed to standardize dialysis care like a fast-food chain.
  • Economists argue against this approach due to the higher stakes involved in healthcare.
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