News From Terre Haute, Indiana

Flashpoint

November 28, 2009

FLASHPOINT: Most health care is mediocre and expensive

This letter is in response to a recent Flashpoint letter by Dr. James E. Stephens of Brazil titled: ”Government created health care’s dysfunctional mess.”

In his letter, Dr. Stephens focused almost exclusively upon his perception that Medicare and Medicaid cause health care providers a lot of inconvenience and that they provide insufficient levels of reimbursement to doctors as evidence that our health care system is a dysfunctional mess. He referred to negative impacts upon incomes for doctors and hospitals associated with government-run health care programs over and over again. Dr. Stephens did not address the significant benefits to patients associated with Medicare and Medicaid. He also neglected to mention that, for many Americans, Medicare and Medicaid provide the only health care coverage available to them. How many retirees on Medicare would want to give up Medicare and return to private insurance coverage? Not any that I have ever met.

Dr. Stephens then dismissed the relatively short U.S. life expectancy, high infant mortality rates and high costs of health care even though these inexcusable shortcomings are very well documented. He apparently believes that our health care system is far superior to that provided in “socialist” nations. He asked “If we are so bad, why do people from all these countries want to come to the U.S. for the care they can’t get at home?” He then made the assertion that “We deliver the very best health care in the world and I’m proud to be a part of it!“

I agree with Dr. Stephens that the very best health care in the world is available in the U.S. However, it is available almost exclusively at university teaching hospitals like Johns Hopkins University in Baltimore and top-flight facilities like the Mayo Clinic in Rochester, Minn. Most Americans settle for health care that is of much lower quality and many go without health care altogether. The citizens of countries like France, who have socialized medicine, enjoy far better health care than the citizens of small towns in rural areas of the U.S. How many Parisians who are dissatisfied with their socialized health care system fly from Paris to New York and then on to Indianapolis, rent a car in Indy, and drive to Brazil, Ind., to consult with a doctor?

Interestingly, the health care provided at university medical clinics and teaching hospitals is frequently much less expensive than that provided by doctors in private practice and at for-profit hospitals, regardless of their locations. This is true, in part, because the doctors at university clinics and hospitals are faculty members who earn a relatively low fixed salary and have little incentive to order unnecessary treatments and procedures. For example, I consult with a doctor at Johns Hopkins University who is one of the top specialists in his field. (He, in fact, does see patients who fly in from France.) His charges are so low for an office visit and tests that, depending upon the extent of the services, the cost is significantly less for a visit to Johns Hopkins than for a visit to my local doctor even when including the cost of travel to and from Baltimore!

In theory, if every American was willing to invest the time and effort in order to carefully evaluate the quality of health care and its cost and then travel to obtain the best and least expensive health care, uncompetitive providers would be forced to improve quality and reduce costs or go out of business. Unfortunately, it is extremely difficult to find data on the quality of care provided by doctors. For example, data such as the percentage of surgical procedures performed by a particular doctor that have been successful is impossible to obtain. Likewise, it is very difficult to get estimates of the cost for a particular medical procedure from several providers. Health care providers don’t want this information to be made available to the public.

When you are really sick, you can’t very well go shopping around and wait for appendectomies to go on sale. When you are involved in an automobile accident and are taken, unconscious, to the emergency room, you can’ t take the time to determine if the doctor on duty received top-flight training and compare the prices charged with those at other emergency rooms. No, you get what is available at whatever price they charge. There really is no competition. This is one of the primary reasons why the private sector delivers health care of mediocre quality at high cost to many Americans. The mechanism based upon competition that keeps the quality of such consumer products as washing machines high and the cost low does not function with health care.

In my view, what we need is a universal health care system with a single payer. If everyone in America was enrolled in Medicare, we could ensure that every citizen gets affordable health care. Private health care insurers should be barred from making profits or eliminated. Under such a system, everyone could still choose his or her own doctor and hospital. However, payments to health care providers need to be made at set rates. The government must control prices as is done in virtually every other country in order to prevent the cost of health care from bankrupting us all. Even very conservative countries like Switzerland have imposed price controls on doctors and hospitals. Price controls and a ban on advertising also should be imposed on prescription drugs. A widely available and easily accessed database that would allow consumers to compare the quality of health care provided by doctors and hospitals should be developed in order to help foster competition.

These steps will improve the overall quality of U.S. health care and dramatically reduce the costs. The health care industry, which makes billions of dollars in profits every year, has fought any and all attempts to reform health care. They have done this by legally bribing and corrupting our elected representatives with campaign contributions and running advertisements filled with distortions and lies designed to scare voters, especially seniors, about health care reform. Unfortunately, they have already succeeded because the health care “reform” bills currently being debated in the House and Senate represent very little in the way of any real reform.

— John Allen

Terre Haute

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