system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: Why a developing country like India have cheaper health care then developed country like America?
gpt
America has by far the most expensive health care system in the world, with costs per operation approximately 10 times the average costs in other developed countries. This is because American health care lacks 'vertical integration'. Just like Walmart can undercut prices by controlling it's supply chain and providing massive bulk services from a central administration, government health care providers can too, negotiating better prices and saving on advertising, negotiation, insurance, etc.

Developing nations services are even cheaper than other integrated health services for the same reasons. Wages for doctors and nurses are lower, rent is lower, and they can negotiate bulk drug purchases at cost or near cost, since it's better for a drug company to sell to Cambodia for a tiny profit than for none. These factors (cheaper labor, cheaper drugs, and cheaper land) make publicly administrated health care in developing nations affordable, if slightly less high quality.