Question

Bob lives in Massachusetts and his good friend Bill lives in Alabama. Bob and Bill both suffer from the same complicated kidney disease. However, Bob’s treat costs $50,000/year while Bill’s cost $100,000 per year. What are the possible explanations for these differences? Evaluate these possibilities and report which explanations are most likely.

Answer 1

Answer : According to the question Bob and Bill are two good friends and both suffers in same disease. But both lives in different states. Bob lives in Massachusetts state where the treatment cost is $50000 and Bill lives in Alabama where treatment cost is $100000. This treatment cost difference indicates three possible explanations. These are following :

i) Bob's disease stage is minor while Bill's disease stage is major. Obviously minor stage of disease requires less treatment cost than the major stage of disease.

(ii) Both friends suffers in the same stage of disease but the treatment cost is different in different states.

(iii) Both friends are in same disease stage but Bob takes less costly treatment because of financial crisis and Bill takes high costly treatment because of sufficient financial support.

The explanation number (iii) is most likely often. Technology is developing day by day. Better technology requires more cost. In medical treatment, there exist two types of treatment. One for poor people which is less costly and using old technologies to treatment. Another for rich people which is more costly and using new technologies to treatment. Obviously the treatment quality differs here. More costly treatment provides higher quality treatment and low costly treatment provides lower quality treatment. Financial condition is not same for all and hence Bob takes less costly treatment and Bill takes high costly treatment.