Obama wants to cut payments to healthcare providers

Your arguement doesn't work. You can't talk capitalism in one sentence and government price controls in another. It's liberal double talk. If the government can just set a price for service irregardless of the cost to supply the service, then there are no market forces and hence it is far from capitalistic or free market no matter how you want to twist it.

 

Whether you believe it or not there is a minimum cost of doing business.

 

Maybe they should just refuse to provide services to all medicare and medicaid patients. Then they can reduce their staffing, because they won't need to serve as many people. Be more efficient and turn a profit.

You don't seem to be following.

The govt (me and you) does get to say what they will pay and what they won't pay. You and I get to say that in everything we purchase. I'll pay X for a car. I'll pay Y for a house. I'll pay Z for a loaf of bread. If its more than that, I'll find an alternative. The car dealer/homeowner/grocery store then gets to decide whether they should lower their price or keep it as it. If they lower their price, they lose revenue but may keep a customer. If they keep it the same, their margins stay where they were but they might not have a customer.

The doctors get to make that same decision. The govt's "price" is X. Will the healthcare providers accept that "offer?" If not, the healthcare provider can wait and service someone that will. If it is good enough or if they want that client bad enough they'll figure out a way to make it work. Simple econoimics, right.

If they don't like the "price" for Medicare business they can choose to only serve non-Medicare customers. Or they can make themselves more efficient (ie lower expenses) and keep the revenue source coming in. What's so difficult about this concept?

I'll assume you were being sarcastic with your last point although you shouldn't be. If a provider decides its not worth providing the service for the Medicare patients someone else will step in. It happens all the time in everyday business. Why can't it happen here?