The cost of high-tech medicine
Wednesday, March 30, 2011
Britain has fewer high-tech medical machines than Estonia and Turkey - Telegraph.
This will not surprise anyone who has lived in an emerging market. The interesting question is "why?" In a spirit of scientific enquiry let me offer a theory for you all to shoot down;
The profitability to the vendor of a a good or service varies directly with the number of bureaucrats involved in its purchase, multiplied by their average annual remuneration but divided by the square of the number of decision makers with a financial interest in the outcome. Where "bureaucrat" is defined as a paid, office-bound employee with no financial interest in the outcome of the purchase.
Please note that it is not specific to the public sector (although the number of decision-makers with a financial interest in the outcome is likely to be lower there). Let's call it "Paine's Theory of Purchasing."