Cosmetic surgery is one of the few types of medical care for which consumers pay almost exclusively out of pocket. In health markets without third-party payers, doctors and clinics use price competition, package prices, convenience and other amenities in order to attract patients willing to purchase their services. When patients pay their own medical bills, they become prudent consumers. Thus, the real (inflation-adjusted) price of cosmetic surgery fell over the past two decades — despite a huge increase in demand and considerable innovation, says Devon M. Herrick, a senior fellow with the National Center for Policy Analysis.
- The price of medical care has increased an average of 118 percent.
- The price of physician services rose by 92 percent.
- All goods, as measured by the inflation rate, increased by 64 percent.
- Cosmetic surgery prices only rose only about 30 percent.
Cosmetic services have become competitive for a variety of reasons, including the fact that surgeons generally adjust their fees to stay competitive and quote package prices.
Wherever there is price competition, quality competition tends to follow.