
EP490: The Problem Show: 3 Problematic Hospital Myths, Including "There Is a Healthcare Market," With Shane Cerone and Sam Flanders, MD
Oct 23, 2025
Shane Cerone, a healthcare executive from Kada Health, and Dr. Sam Flanders, a quality improvement physician, tackle three pervasive healthcare myths. They argue that a true healthcare market is non-existent due to lack of price transparency. Both share insights on how hospitals can thrive on Medicare rates, countering the belief that lower prices mean poorer quality. They emphasize that operational improvements can enhance care while reducing costs, setting the stage for future discussions on actionable solutions.
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Transactions Make A Market
- A true market requires transparent transactions where buyers and sellers know prices at the time of exchange.
- Without that transparency, healthcare cannot develop real price-based competition.
No Volume Reward For Quality Gain
- Dr. John Rodas improved safety from a D to an A and received no increased patient volume or better payer contracts.
- That experience left him questioning the incentive for hospitals to invest in quality.
Use Data To Enable Transactions
- Use combined price and quality data to create real transactions that let buyers choose providers.
- Deploy that visibility to seed competition and steer patients toward better-value hospitals.



