Keith Smith’s discussion with host Ross Roberts’ over free market health care was an eye opening experience that helped change my point of view on healthcare in America. Smith runs an organization that is so unorthodox to any other company in the healthcare industry, some people can’t even believe it is real. While there are many different details that separate the Surgery Center of Oklahoma from other medical establishments, the glaring difference is that the Surgery Center of Oklahoma does not take insurance, and posts their prices online. In addition, the center only allows for cash payments from customers. While people may be confused or ask what his reasoning was for starting the Surgery Center of Oklahoma and making it abnormal, I applaud his effort. It appears evident to me that Keith Smith is a standup guy that cares about the well-being of his patients first, and making a profit second. He was able to equip these traits while also trailblazing his own path in the medical field.
Smith’s entrepreneurial insight on how the Surgery Center of Oklahoma is operated was fascinating to learn about. His services are an innovation to the medical field that have been proven to be successful, while benefiting the consumer at the same time. A great example of this can actually fall on his first patient ever, who needed a breast mass removed. After consulting with her and other surgeons, the total came out to be $1900 for the surgery and examination. This is astounding, considering the other hospital she spoke with would have done the surgery for a whopping $19,000! Smith believes in being fully transparent with his patients, and showing all prices up front with no secret fees. Another intriguing concept is that the prices of base packages for their surgeries have not risen since the company's inception in 1997, and some have even become cheaper. You would expect in current society for them to follow the trends of the market, but it is quite the opposite. With the current inflation rate increasing it would make sense for their prices to rise in relation, however they have contradicted that. As a result you would believe their surgeons must make lower wages, yet the surgeons at the center make more there than they would at any other location thanks to Smith’s innovative operation.
Keith Smith’s revolutionary, and divergent business model has sparked many different concepts that relate well with society as a whole. Last Wednesday at Dr. Bylund's lecture over his new book, someone presented the question: “As an entrepreneur should you tell people what they WANT to hear, or what the consumer NEEDS to hear.” This got me to start thinking, because it is very common that people in the business world will tell people what they desire to hear, even if it is untrue and can be immoral. I believe Keith Smith’s business model allows for him to tell patients both what they want, and need to hear. His transparency to customers combined with astounding prices hits both points on the head. A reference I have mentioned many times throughout my writing has been “innovation.” In class one of the focal points we have discussed all year is that innovation and creativity within society is what drives the market forward. Keith Smith took a big risk by walking away from being a successful anesthesiologist to open the Surgery Center of Oklahoma, because he knew his business model would have a great chance at success. When you are honest with your customers while also supplying good health care, you have an exceptional shot at being successful.