Save for what I considered to be a brilliant movie in The Founder, this podcast was actually my favorite piece of media to consume and subsequently write about thus far. Keith Smith is a very intelligent man with a very interesting business, making for an engrossing and engaging conversation with Russ Roberts all the way through.
Keith Smith is a co-founder of the Surgery Center Of Oklahoma, along with his fellow anesthesiologist Steve Lantier. The duo started the business in 1997 and have never looked back. The premise for the business, and what makes their practice different from normal hospitals, is that they give their patients a price upfront, and perform the procedure with no hidden fees or surprises. Not only this, but their prices are also significantly lower than normal hospitals, making it an all-around win for their customers.
Keith and Steve have been largely successful, and that is because they fulfilled an important role of entrepreneurship in regard to society, and that is innovation. A large part of the interview was spent talking about the very flawed system of normal hospitals, and it genuinely fascinated me. I had no idea any of this was such a problem, which is perhaps the reason I enjoyed this podcast so much, it was revealing to say the least. Basically, hospitals just literally make up fake numbers for the cost of healthcare and generate insane unearned profits. And if the client can not pay their bill, they simply claim it as "lost earnings" and the government takes care of it.
Now, obviously, there is much more nuance that goes into the healthcare field that I am not nearly educated enough on to make some grand statement about how all healthcare should be part of the free market, so I won't say that. But what I will say is that after listening to this interview, it is painfully obvious that at the very least, the current system needs some serious revamping. Keith recognized this, and like all the best entrepreneurs, decided to take action.
With his genius innovation and novel ideas, he has created a very successful business, but it's more than that. He has provided a product that has benefitted thousands of people, and improved their lives. That is the value of entrepreneurship in society, and why the free market, capitalism, and competition are so important for society to continue advancing at the rate that we have been. Advancement is driven by innovation, and innovation is driven by entrepreneurship.
The same can be said of Tesla, Amazon, Walmart, and any major business. They have solved some sort of problem in the market, filled some gaps, and become billion-dollar businesses. But more importantly, they have solved a problem in people's lives and filled a gap that has improved their quality of life on a day-to-day basis. Whether it is electric cars solving climate change, an online store providing an efficient shopping experience, or a medical practice providing cheaper rates and transparency, innovation will always be crucial to improving people's lives, and entrepreneurship is at the very center of that, driving it every day.
Works Cited
BYLUND, PER L. Seen, the Unseen, and the Unrealized: How Regulations Affect Our Everyday Lives. LEXINGTON Books, 2018.
“Keith Smith on Free Market Health Care.” Econlib, 21 Feb. 2022, https://www.econtalk.org/keith-smith-on-free-market-health-care/#audio-highlights.
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