"Opportunity for arbitrage": Shark Tank investor Mark Cuban reveals healthcare is over-complicated to profit off patient confusion

Mark Cuban, the prominent investor known for his role on Shark Tank, shared his insights into the healthcare system during a conversation with Dr. Graham Walker on the Off Call Podcast on April 3, 2025. Cuban explained that while healthcare is, at its core, a simple business, it has become unnecessarily complicated.

Mark emphasized that each added complication in healthcare creates opportunities for financial gain, which ultimately harms the system.

“And what happens is, rather than just keeping it at that simple level, the entire industry, because of this scale, has grown in complication because every complication you add is an opportunity for arbitrage,” Cuban said.

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Shark Tank's Mark Cuban critiques the healthcare system for profiting off complexity

Simplifying the healthcare process

Cuban highlighted the inherent simplicity of healthcare. The Shark Tank investor explained that, fundamentally, it should involve just two questions:

“What’s it going to cost and how are you going to pay for it?”

In this simplified version of healthcare, a patient visits a doctor, the doctor provides a diagnosis, and a treatment plan is proposed. Cuban underscored that the system works well when straightforward, without unnecessary complexity.

“You go to the doctor, hopefully the doctor says nothing’s wrong. If there’s a complication or some need, the doctor tells you what you need,” he said.

However, Cuban emphasized that the scale of the healthcare industry has led to a situation where more complications are added, creating opportunities for financial exploitation. He explained that every new layer of complexity introduces a chance to increase profits for those controlling the system.

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The burden of administrative overhead

Another key issue Mark Cuban raised is the burden that administrative tasks place on healthcare providers. He noted that doctors spend significant time handling paperwork and dealing with insurance, rather than focusing on patient care.

According to Cuban, the unnecessary complexity of the healthcare system distracts healthcare professionals from their primary role of providing medical services.

“If everybody walked in and had a daddy’s credit card and all the pricing was transparent,” the Shark Tank investor remarked.

Cuban suggested that if transparency were introduced into healthcare pricing, patients and doctors would have clearer expectations, which would allow for more efficient care. He explained that in such a system, doctors could return to their core responsibilities, performing medical duties without the strain of managing financial concerns.

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Addressing financial waste in healthcare

Cuban also addressed the financial inefficiencies that pervade the healthcare system. He pointed out that significant resources are spent on administrative roles rather than improving patient care. Cuban noted that roles like the chief revenue officer and consultants who handle billing issues only add to the cost without providing direct value to patients.

“You have your chief revenue officer who has 16 revenue consultants who try to then go back and out of that three to 5%,” he explained.

In response, Cuban proposed a solution that could potentially streamline the system. He suggested a system where the government guarantees medical bills, which would reduce the need for complex insurance and billing negotiations. Cuban critiqued that the current system centers on the belief that healthcare is being “eaten” by its inefficiencies.

“The system is feeding itself. It’s eating itself,” he remarked.

The Shark Tank investor called for simplification of a future where healthcare is transparent, less burdened by administration, and focused more on patient outcomes rather than financial gains from complexity.

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New episodes of Shark Tank typically air on Fridays at 8 PM ET on ABC and are also available for streaming on Hulu.