MEDICAL TUESDAY . NET |
NEWSLETTER |
Community For Better
Health Care |
Vol
VIII, No 1, Apr 14, 2009 |
In This Issue:
1.
Featured Article:
One in Five Mothers Experience Post Partum Depression
2.
In
the News: Transparency Is More Powerful Than Regulation
3.
International Medicine: Canadian Medicare Couldn't Provide Burr Holes to Save Natasha
4.
Medicare: The
Massachusetts Debacle Coming to Your Neighborhood
5.
Medical Gluttony:
Obtaining an extra $600 Opinion on the way to a $125 Office Visit
6.
Medical Myths: I
have insurance and, therefore, I deserve my Electric Wheelchair
7.
Overheard in the Medical Staff Lounge: Is the Recession Affecting our Practices?
8.
Voices
of Medicine: The
Recession and its Effect on Healthcare
9.
The Bookshelf: Is
Atlas Shrugged Relevant Today?
10.
Hippocrates
& His Kin: Cost of Long
Term Care
11.
Related Organizations: Restoring Accountability in HealthCare, Government and Society
Words of Wisdom, Recent Postings, In
Memoriam . . .
*
* * * *
The Annual World Health Care Congress, co-sponsored by The Wall Street Journal, is
the most prestigious meeting of chief and senior executives from all sectors of
health care. Renowned authorities and practitioners assemble to present recent
results and to develop innovative strategies that foster the creation of a
cost-effective and accountable U.S. health-care system. The extraordinary
conference agenda includes compelling keynote panel discussions, authoritative
industry speakers, international best practices, and recently released
case-study data. The 3rd annual conference was held April 17-19,
2006, in Washington, D.C. One of the regular attendees told me that the first
Congress was approximately 90 percent pro-government medicine. The third year
it was 50 percent, indicating open forums such as these are critically
important. The 4th
Annual World Health Congress was held April 22-24, 2007, in
Washington, D.C. That year many of the world leaders in healthcare concluded
that top down reforming of health care, whether by government or insurance
carrier, is not and will not work. We have to get the physicians out of the
trenches because reform will require physician involvement. The
5th Annual World Health Care Congress was held April 21-23, 2008,
in Washington, D.C. Physicians were present on almost all the platforms and
panels. This year it was the industry leaders that gave the most innovated
mechanisms to bring health care spending under control. The solution to our health care problems is emerging at this ambitious
Congress. Plan to participate: The
6th Annual World Health Care Congress will be held April 14-16, 2009,
in Washington, D.C. The
5th Annual World Health Care Congress – Europe 2009, will meet in Brussels, May 23-15, 2009. For more
information, visit www.worldcongress.com. The future is
occurring NOW.
To read our reports of the
2008 Fifth Congress, please go to the archives at www.medicaltuesday.net/archives.asp
and click on June 10, 2008 and July 15, 2008 Newsletters.
*
* * * *
1. Featured Article: One in Five Mothers Experience Post Partum
Depression
Postpartum Depression Epidemic Affects More than Just Mom
The psychologist smiles at Manuela, a new
mother in her late thirties. "Please play with your baby for two
minutes," the therapist instructs her and then leaves the room. Two video
cameras film Manuela (which is not her real name) and her three-month-old
daughter. In the next room, a split-screen monitor shows the mother's profile
on the left and her infant in a baby chair on the right.
At first, Manuela appears to be at a loss
for what to do. Then, her face noticeably stiff, she begins to talk softly to
her baby. Her baby fidgets, briefly makes eye contact and then turns away.
Manuela eventually stops talking and stares into the distance, unsure again how
to act. She absentmindedly strokes her baby's foot with one hand. The
psychologist knocks on the door; the videotaping is over. The new mother is now
on the verge of tears.
Manuela is undergoing therapy at the
Clinic for General Psychiatry in Heidelberg, Germany, for postpartum
depression, an ailment that has strained her relationship with her baby. Although
the vast majority of mothers experience periods of crying and irritability
along with concentration lapses and exhaustion, these so-called baby blues
disappear within a few hours or days of delivery. But 10 to 20 percent of women
in the U.S. develop, in the first year after childbirth, the more disabling
despair that afflicts Manuela. These mothers succumb to a deep sadness that, if
untreated, may persist for months to years.
Manuela frequently feels exhausted and
emotionally empty. When her baby cries, she sometimes wants to flee or hide.
She is wracked with guilt because she cannot show love to her daughter. Mothers
with symptoms of postpartum depression [see box on page 70] are often
overwhelmed by the feeling that they might harm their babies. Although they
rarely cause any outright harm, depressed mothers may have difficulty caring
for their infants—and that fact can heighten their distress. . .
The causes of the disorder are not fully
known, but the dramatic hormonal fluctuations that occur after delivery may
contribute to it in susceptible women. A bout of previous depression is a huge
risk factor for the postpartum variety, new research shows. Whatever its cause,
depression can weaken the nascent bond between a mother and her child, studies
suggest, and thereby make a toddler more passive, insecure and socially inhibited—although
a child's intellectual development usually remains unimpaired.
Thus, in addition to treating the mother's
depression, psychologists and psychiatrists increasingly focus on strengthening
the relationship between the mother and her child—for example, by using a video
camera to record and analyze their interactions. "We need to change the
unfavorable behavioral patterns that develop between mother and child during
depression," says University of Heidelberg psychologist Corinna Reck.
Hormonal Havoc
Women seem to be particularly vulnerable to depression during their
reproductive years: rates of the disorder are highest in females between the
ages of 25 and 45. New data indicate that the incidence of depression in
females rises, albeit modestly, after giving birth. In the October 2007
American Journal of Psychiatry, epidemiologist Patricia Dietz of the U.S.
Centers for Disease Control and Prevention and her colleagues reported that
10.4 percent of 4,398 mothers had been depressed in the nine months following
childbirth, compared with 8.7 percent in the nine months before pregnancy and
6.9 percent during pregnancy. More than half of the women with postpartum
depression had also been depressed during or before pregnancy, suggesting that
a previous occurrence of depression may be the biggest risk factor for
acquiring the illness postpartum. . .
The demands of motherhood very likely play
a role as well. Many women feel exhausted from a baby's broken sleep and become
overwhelmed by new child care duties. Some may lament the loss of the life they
led before having the baby or of their former figure. Women who must endure
such stresses on top of marital problems, a complicated birth, job loss or lack
of support from family and friends are more likely to succumb to depression.
Broken Bonds
The consequences of
depression inevitably reach beyond the mother. In a fog of sadness, a mother
often lacks the emotional energy to relate appropriately to her baby.
Overwhelming grief prevents her from properly perceiving a child's smiles,
cries, gestures and other attempts to communicate with her. Getting no response
from mom, the child quits trying to relate to her. Thus, three-month-old
infants of depressed mothers look at their mothers less often and show fewer
signs of positive emotion than do babies of mentally healthy moms.
In fact, infants of depressed mothers
display something akin to learned helplessness, a phenomenon University of
Pennsylvania psychologist Martin E. P. Seligman and his colleagues described in
the 1960s. In Seligman's experiments, an animal would conclude that a situation
was hopeless after repeatedly failing to overcome it—and then remain passive
even when it could effect change. A similar passivity characterizes depression.
"Sometimes the infants mirror their mother's depressive behavior,"
Reck says . . .
A child of a depressed mother may even
become more introverted and face a greater risk for social phobia, an extreme
fear of social situations, among other emotional difficulties. In 2007 Reck, Moehler
and their colleagues reported that in the same 101 mother-infant pairs,
postpartum depression at six weeks, four months and 14 months after birth
tended to make a 14-month-old toddler more fearful and inhibited as compared
with same-age toddlers of healthy moms. Other work suggests that postpartum
depression may produce behavioral problems and negativity in children. . .
Meanwhile a mother can take steps to ease
her emotional burden by asking for help from family and friends, sleeping more,
spending time with her spouse, getting out of the house and putting less
pressure on herself. In the end, most mothers who receive adequate
treatment—often a combination of psychotherapy, medication and
self-help—usually recover completely within about two months of starting
treatment, according to psychiatrist Ricardo J. Fernandez of Princeton Family
Care Associates in New Jersey. Some mothers even emerge from their cloud of
sadness with a new sense of clarity. As one mother said of her depression,
"It gave me the impetus to change my life."
*
* * * *
2. In the News: Transparency
Is More Powerful Than Regulation
Transparency
in health care has been spoken of as a way to reign in healthcare costs. Yet
many of us fail to believe this. The modus operendii is that regulations will
control costs better than the free marked. We feel that the free market is the
most ruthless mechanism to lower any costs and healthcare costs would be
reduced in the same manner. If there were no health insurance, most of us
understand that we would find the best doctor at the cheapest price we could
find. Other doctors who are seeing open appointments in their office schedule
would consider lowering their fees to attract more patients. If we all paid to
see our doctor, no one would go to a doctor without knowing up front what the
charages would be. This is transparency.
Attempts to
have hospitals disclose their charges have been unsuccessful. They have
negotiated various fees with the several insurance carriers including Medicare
and are not inclined to make these public. However, if patients paid in cash,
hospitals would have to disclose their fees up front or suffer increasing empty
beds which means lost revenue. No one would go to any hospital outside of an
emergency with no assurances that they won't be gouged with suprises.
Now Gordon
Crovitz comes up with a historical analysis of transparency.
In 1933,
newly elected president Franklin D. Roosevelt had to make a tough choice in
dealing with the aftermath of the stock-market crash that wiped out much of the
equity in American companies. Leading members of FDR's brain trust wanted
federal regulators to get the power to make key decisions over markets, such as
which companies deserved to be publicly traded. Today, many of President Barack
Obama's advisers want unprecedented authority to oversee details of the credit
markets, and how banks lend.
FDR decided
instead to side with advisers who argued for disclosure as the key operating
principle of our markets. Helping markets function better, they reasoned, was a
sounder safeguard than trusting regulators to decide.
Supreme Court
Justice Louis Brandeis had made the point that "sunlight is the best
disinfectant," and the Securities Act of 1933 mandated the information
that public companies would have to share. One indicator that disclosure was
more important than regulatory power is that it wasn't until the following year
that the Securities and Exchange Commission (SEC) was created.
What worked
to restore confidence in the equity markets then can help to restore confidence
in the debt markets now: more disclosure, aimed at making the terms of debt
such as mortgages more transparent. Unlike the case of stocks, under current
law no one in the chain of making, insuring and rating debt is required to
disclose full terms to regulators or to the market. Instead, debt markets function
based on best estimates, with mathematical models determining probabilities of
cash flows and defaults.
Ever since
the models failed due to an unpredicted bubble, the market has been paralyzed
with uncertainty. There is still a wide gap between what banks think their bad
debt might be worth and what the Treasury or private investors are willing to
pay . . .
FDR was no
Milton Friedman, and neither was Brandeis, but they grasped what we seem to be
forgetting, which is that markets are too complex for even the most powerful
regulators to dictate. Better transparency is the surest way to make markets
more efficient and less volatile. Market wisdom results when more people access
better information. . .
*
* * * *
3. International Medicine: Natasha Richardson, 45, died on March 18, 2009,
of epidural bleeding.
Natasha Richardson, 45, daughter of Vanessa Redgrave, died on Wednesday, March 18, 2009, at Lennox
Hospital in New York after a ski accident on Tuesday, March 16, 80 miles from
Montreal while taking a skiing lesson on a bunny slope. She initially
turned down medical treatment but an hour later complained of a severe headache and was taken by ambulance to a
hospital.
Although she
was only an hour ambulance ride away from Montreal, the world's second largest
French speaking city, two days later she was taken to the United States to the
New York Lennox Hospital with emergency life saving surgery not having been
done in Canada.
An autopsy of the actress Natasha
Richardson on Thursday indicated that she died of a brain hemorrhage caused by "blunt impact"
to her head, according to the chief medical examiner for New York City. The
official cause of death was an epidural hematoma. A hematoma is a collection
of blood, and epidural in this case refers to the space between the skull and
the dura. If surgery is performed quickly, it may be possible to save the
patient's life, doctors said.
If the accident had happened in the United
States, she may also have died. However, all the reports fail to recognize the
deficiencies of Canadian Medicare. Superior care is available in nearly every
city in America. Ms Richardson had her warning when the headache occurred one
hour after the accident, which normally alerts any physician to an impending
catastrophic bleed requiring immediate burr holes in the scalp to drain the
blood before it compresses the brain and possibly craniotomy. This was not done
during the two days in Canada despite being within one hour via ambulance ride
to hospitals in a world-class French Canadian city, several times larger than
Sacramento.
In Sacramento, a city of less than one
million and two million in the metropolitan area, all four Mercy Hospitals, all
three Sutter Hospitals and all three Kaiser Hospitals, and UC Davis Medical
Center would have been able to save her life. Montreal surely must have even
greater capability. Yet, her family chose to delay treatment and leave Canadian
Medicare for care available universally in America.
The news accounts focused on safety
measures and helmets. These are excellent comments for the future of others.
None seemed to be focused on what was really necessary to save her life after
the accident. Perhaps no one wants to admit that we have the number one
world-class healthcare that half of the country thinks needs improving.
However, they are talking about payment reform, not healthcare reform. Even
though the World Medical Association rates America behind Columbia in care, we
have never seen anyone flee American Care for that available in Columbia. The
rating agencies never rate anyone without socialized medicine as having
appropriate care. Hence, the falsely low standing of America noted in these
prejudicial polls. (If you would flee from America for better care elsewhere,
give us your story at the blog above and we'll publish it.)
Universal availability of care saves more
lives than universal access. America has universally available care. Canada has
universal access to a waiting list. Care may never be rendered. In this case,
it was tragic.
Canadian
Medicare does not give timely access to healthcare, it only gives access to a
waiting list.
--Canadian Supreme Court Decision 2005 SCC 35, [2005] 1 S.C.R.
791
http://scc.lexum.umontreal.ca/en/2005/2005scc35/2005scc35.html
*
* * * *
4. Medicare: The Massachusetts Debacle Coming to Your
Neighborhood
NATIONAL HEALTH PREVIEW: THE
MASSACHUSETTS DEBACLE, COMING SOON TO YOUR NEIGHBORHOOD
Praise
Mitt Romney, says the Wall Street Journal. Three years ago, the former
Massachusetts Governor created the "universal" health-care program
that the White House and Congress now want for the entire country. It is
proving to be instructive, as Romney's foresight previews what President Obama,
Max Baucus, Ted Kennedy and Pete Stark are cooking up for everyone else.
In
Massachusetts's latest crisis, Governor Deval Patrick and his Democratic
colleagues are starting to move down the path that government health plans
always follow when spending collides with reality -- i.e., price
controls. As costs continue to rise, the inevitable results are coverage
restrictions and waiting periods. It was only a matter of time, says the
Journal.
They're
trying to manage the huge costs of the subsidized middle-class insurance
program that is gradually swallowing the state budget, says the Journal:
•
The program provides
low- or no-cost coverage to about 165,000 residents, or three-fifths of the
newly insured, and is budgeted at $880 million for 2010, a 7.3 percent
single-year increase that is likely to be optimistic.
•
The state's overall
costs on health programs have increased by 42 percent since 2006.
Like
gamblers doubling down on their losses, Democrats have already hiked the fines
for people who don't obtain insurance under the "individual mandate,"
already increased business penalties, taxed insurers and hospitals, raised
premiums, and pumped up the state tobacco levy. That's still not enough
money, says the Journal.
Which
brings us to Washington, where Obama and Congressional Democrats are about to
try their own Bay State bait and switch: First create vast new entitlements
that can never be repealed, then later take the less popular step of rationing
care when it's their last hope to save the federal treasury, says the Journal.
. .
Source:
Editorial, "National Health Preview: The Massachusetts debacle, coming
soon to your neighborhood," Wall Street Journal, March 27, 2009.
For more on
Health Issues . . .
Government
is not the solution to our problems, government is the problem.
-
Ronald Reagan
* * * * *
5. Medical Gluttony: Obtaining an extra $600 Opinion on
the way to a $125 Office Visit
A patient came in today with an
upper respiratory infection, with a two-day history of cough with minimal
expectoration. Last evening she decided that she would go to the emergency room
to make sure all was well. She obtained a cursory evaluation, tests were
ordered and the nurse told her two hours later that she could go home. She
complained that she had not been told what was wrong with her and the doctor
interrupted his emergency schedule to inform her that nothing was found and
went back to his emergency.
When the patient was seen she was
in no respiratory distress with her vital signs stable and she was afebrile.
Exam was rather unremarkable except some chest findings consistent with
bronchitis. She was given a prescription for antibiotics, which should clear
her in a few days.
The HMO to which this patient
belongs states that they pay $600 for the average ER visit even though most are
considerably more. We have seen statements from the emergency departments that
were 10 times that amount. Meanwhile, the same HMO pays us $65 for our $125
office call.
What could change this over
utilization of resources and excessive costs? Transparency would help. If the
patient knew the charges involved at the registration desk, she may have turned
around and waited for her appointment the next morning. If she had known that
this was not really the type of consultation she had hoped for, not even three
minutes with the ER doctor, she may have reconsidered. If her HMO would have
reviewed the case and told her it was no emergency and billed her for the $600
three-minute consultation that was unnecessary, the PR fallout would have been
unbelievable.
But none would have come close to
the simple mechanism of a significant deductible and a significant co-payment
on every healthcare charge. If the patient had to plunk down say 20 percent at
the ER registration counter ($120), everything would have been brought into
focus and rationale behavior would have ensued. Healthcare costs would have
been brought into line at the registration desk without any oversight,
mandates, price controls, insurance or government interference. There is
nothing more effective than the free market to bring costs into line. But then
Congress may have to lay off some of their staff.
Medical Gluttony thrives in Government and Health
Insurance Programs.
Gluttony Disappears with Appropriate Deductibles and
Co-payments on Every Service.
*
* * * *
6.
Medical Myths: I
have insurance and, therefore, I deserve my electric wheel chair.
A very common concept among
patients is that they have insurance and that should settle any issue and cover
any desired benefit. The current rage is electric wheelchairs. Patients see
their neighbors and friends with these wheelchairs, who they think are less
disable that they, so why shouldn't they have one. They come to the doctor
expecting the appropriate prescriptions to go out and buy one with their
insurance card.
Last week we had such a patient
and he had a beauty - a place for his drinks up front and for his groceries in
the back. He said he only lives two blocks from the grocery story and decided
he no longer needed his car so he sold it. He only would admit that he sold it
for more than Medicare paid for the wheelchair.
This is one part of the equation
that has never been fully evaluated. Durable medical equipment may replace
items such as a car which insurance is not designed to cover.
So how should durable medical
equipment be handled? Rather than make the doctor the scapegoat, there is a
very simple solution: A co-payment that takes this into account.
We have always felt that durable
medical equipment has to have a co-payment of around 40 to 50 percent.
Otherwise, everyone wants one. If the co-payment is only 20 percent, this will
not be enough of a disincentive. Durable medical equipment always involves the
family or significant others. They should always help decide. If it is the
spouse, the question is very easy. Is the electric wheelchair important enough
to make a $1500 co-payment worthwhile? For that amount of money, the spouse may
conclude she can still take her husband in her car and transport him here or
there. For only $500, she may enjoy losing the responsibility of her loved one.
The decisions are realistic in view of the costs.
Be sure to enroll in our revised
sister Newsletter, HealthPlanUSA, coming next month to follow the development
of this concept in future months.
Medical Myths originate when someone else pays the
medical bills.
Myths disappear when Patients pay Appropriate
Deductibles and Co-payments on Every Service.
*
* * * *
7. Overheard in the Medical Staff Lounge: Is the
Recession Affecting our Practices?
Dr. Milton: Has the recession
affected your internal medicine practice?
Dr. Kaleb: Not noticeably
yet. Maybe a few are concerned about the co-payment and a few more about their
drug co-payments.
Dr. Milton: Are the surgeons
affected?
Dr. Yancy: My fees have been
so reduced by Medicare and the insurance companies that I don't see how it
could get any lower.
Dr. Milton: What about
plastic surgery? I would think elective surgery must be hurting.
Dr. Nichols: Well, I can tell
you that plastic surgery is really in the pits. There are very few face jobs that are not
expensive. The tummy tucks have dropped off. The breast jobs are holding
steady.
Dr. Milton: Pediatrics must
be holding up. I would think kids will always be brought in by their mothers if
they even suspect something serious.
Dr. Paul: I think you're
right. We haven't seen much drop off. As we've discussed before, about half of
our practice is Medicaid. Even though the government is broke with a
multi-billion dollar deficit that is worse than Governor Davis had before he
was ousted by Schwarzenegger, we are still getting paid by State of
California. But for our private
patients, they seem to be coming in less frequently.
Dr. Edwards: Then there are
flukes. The HMOs are on a publicity stunt and sending all their patients that
turn 50 a letter that they should have a colonoscopy. The Medical Grand Rounds
at UC Davis discussed the excess of colonoscopies that were being done in this
country. If there is a family history of cancer of the colon, then one might
start at age 50. If none, age 60 is early enough. If there is a polyp, the
visiting professor suggested an additional one in five years and possibly one
in the late 60s when the incidence of cancer of the colon is the highest.
Dr. Rosen: I see the GI
people are doing simple flexible sigmoidoscopies for those without risk
primarily because they can't keep up with all the HMO referrals.
Dr. Milton: It's getting to
be a little like in the UK. Procedures are frequently a result of government
policies and political directives for healthcare.
Dr. Rosen: If patients only
knew what they're going to be getting in the future with further government
encroachment, they might be able to prevent it.
Dr. Milton: But it's only
human nature or immaturity to continue to think we can get something for
nothing.
Dr. Rosen: And a person's
healthcare is the most dangerous thing to try to get for nothing.
The Staff Lounge Is Where Unfiltered Opinions Are
Heard.
*
* * * *
8. Voices of Medicine: A Review of Local and Regional Medical
Journals
The
Recession and its Effect on Healthcare By
David J. Gibson, MD and Jennifer Shaw Gibson
Sierra Sacramento Valley
Medicine
(This article has been heavily edited for publication.
The complete article appears here.)
AMERICA IS IN
A SEVERE RECESSION. Last November, the U.S. lost over half a million jobs, the largest
one month drop in employment in 34 years. That brought the total jobs lost in
2008 to 1.9 million. A job loss usually means a family will lose its health
insurance.
Magnitude of the problem.
We are close to the line that separates a recession from a deflation. America's
household balance sheets shed almost $3 trillion in the third quarter of 2008,
thanks in large part to declining stock prices. That loss, the largest 3-month
drop on record, brings the total loss by U.S. households in 2008 to $10
trillion, or about 10 years worth of equity earnings.
Beyond stocks and bonds, most family wealth is based
on real estate. Household real estate assets fell for a 10th quarter out of the
past 11 and the net worth of real estate is now down 32 percent since 2005.
This is an unprecedented loss of family wealth - almost $6 trillion in real
housing wealth in 2008, or on average of $85,000 per homeowner.1
In addition, retirement accounts have been
devastated. Since October 2007, 401(k)s have lost $1 trillion in value - fully
a third of the value of all 401(k)s. Another $1 trillion has been stripped from
people who lost or changed jobs and rolled their 401(k)s into individual
retirement accounts. Millions of others have been forced to make early,
so-called hardship withdrawals for unanticipated expenses.
Spending by consumers, which has sustained the
economy over the past decade, is in free fall. Most consumer spending has been
based on mortgage debt. Mortgage-based debt declined in the third quarter of
2008 by 1.7 percent, the first decline in 25 years, resulting from an end of
mortgage equity withdrawals.
The economic damage from prior consumer debt-based
spending is becoming apparent. A recent report by New York University Professor
Nouriel Roubini indicates credit debt could peak at $3.6 trillion for U.S.
institutions.2 If this prediction proves accurate, the U.S. banking
system is effectively insolvent because it starts with a capital of $1.4
trillion. Thus, the new Obama Administration will have to use as much as $1
trillion in yet uncommitted public funds to shore up capitalization of the
banking sector. . .
America's true wealth is based on productivity, not
paper derivatives. Here again, the news is not good. After averaging 2.7 percent
productivity growth from 1995 through 2002,3 annual growth of
productivity in the non-farming business sector has slowed dramatically - to
just 1.7 percent in 2005, 1.0 percent in 2006 and 1.4 percent in 2007. At this
last rate, it would take nearly 52 years for average living standards to double
- versus just 26 years at the earlier rate.
This decline in productivity is reflected in the
Labor Department's employment report for December. Employers shed more jobs in
2008 than in any year since 1945. Worse, the pace of job loss is accelerating.
In the third quarter of 2008, the economy shed an average of 199,000 jobs a
month; in the fourth quarter, 510,000 jobs were lost on average each month.
Moody's Capital Markets Group in New York predicts about 2.1 million U.S. jobs
will be lost in 2009 with 80 percent of the layoffs by the 4th of July. . .
For the short term, the recession will affect every
segment of the economy. For the long term, if we "right size" the
country's wealth, we will need to right size all segments of the economy - with
serious implications for the health care industry.
Government services.
Even before any new health care entitlement programs and expansions, federal
health entitlement programs are an economic disaster. Medicare Trustees note
that the program has an unfunded liability of some $36 trillion over the next
75 years. As a percentage of GDP, expenditures are projected to increase from
3.2 percent in 2007 to 10.8 percent by 2082.
The lesson of 2008 may well be that we must ensure
that federal, state and local governments renew their focus on cost-effectively
achieving their fundamental missions of protecting citizens' safety and
security. Government will no longer be able to perform numerous philanthropic
and social functions that individuals and private associations can do for
themselves.
Unfortunately, old ways of thinking die hard. For
generations, and in both parties, American politicians have gained power by
delivering new programs and services paid for with borrowed funds. Initially,
these were raided from the Medicare and Social Security Trust Funds. More
recently, funding has come from the sale of bonds to foreign investors.
The new Administration has embarked on a long,
highly dubious attempt to return to prosperity by throwing hundreds of billions
of newly printed dollars at myriad systemic problems in the health care
industry, the housing industry, the financial services industry, the auto
industry, the Congressional pork barrel industry, and many other enterprises.
But government has no ability to create demand; only
the market can. Government does not create wealth, it can only redistribute it.
Government does not create jobs; it can only delay the inevitable creative
destruction in any free market. Furthermore, government "stimulus
spending" inevitably leads to inflation.
The new Administration is signaling it will
exacerbate the recession and its attendant problems by trying to hold labor
markets of yesterday in manufacturing, health care and government along with
their rich benefit structures.
Make-work jobs in infrastructure will not meet
tomorrow's needs. In recent years, government statistics show that about 25,000
jobs are destroyed and created every hour that America is open for business.
Rapidly evolving markets create dynamic labor markets.
American government at all levels from the local
school systems to the federal are bankrupt.5 Politicians are good at
giving things away. They have no experience in restricting spending and
eliminating programs.
Changes for health care.
As the new Administration greatly expands its funding footprint in health care,
permanent entitlement costs will be in place without realistic sources for long
term funding.6 These new entitlement programs would be created using
temporary "stimulus funding" based on borrowed money. Private health
plans will be driven from the market; and we will be left with a hopelessly
underfunded health care system with no options.
So far, we have few details of how health care
policy will evolve under the new Administration. However, there are clear
indications of Congressional thinking. The Senate Finance Committee is calling
for massive increases in both Medicare and Medicaid. This "Baucus
Plan"7 will add between $200 billion and $300 billion to the
$2.3 trillion we spend each year on government paid health care.
Medicare sets standards for 8,000 medical procedures
and services at a 2007 cost of some $425 billion for people 65 or older, or
about $10,000 per person. Under the Baucus bill, the age for joining Medicare
would drop from 65 to 55. A healthcare system serving 44 million people would
make 32 million more (4 million of whom are now without health insurance)
eligible.
Medicaid will expand to cover every American living
in poverty, rather than just the 61 million people it serves today. This could
push 7 million people into the government program and add billions of dollars
to its cost.
Finally, the State Children's Health Insurance
Program, or SCHIP, will expand to cover all children with family incomes less
than 250 percent of the poverty level - up to $53,000 for a family of four.
That would add millions more people to SCHIP, which today costs $5 billion a
year to cover 6.5 million children.
Put all this together and existing health care
programs - Medicare, Medicaid and SCHIP - will be expanded, new healthcare
regulation for business and individual policies will be established, and
America will have a vast new healthcare program run for and largely paid for by
the government. With little input from patients or physicians, government will
run it, regulate it, supervise its performance, mandate how company
participation in it, and somehow come up with more than several hundred billion
dollars each year to pay for it all.
All these program expansions represent fixed future
spending obligations. Given the revenue claims by existing social entitlements,
there is no long term funding for these spending increases. It is difficult to
find the pony in all of these data.
With expanding government health care financing, we
can expect a decline in payment to providers compared to their rising cost for
delivering services. Competing interest groups will clash for a piece of the
spending pie. Highly politicized Medicare-like price controls on providers and
services will spread to every health funding decision. The result will be
rationing and declines in the quality of services.
Meanwhile, outsourcing of high end health care to
international markets8 is accelerating. There is a clear and present
risk that high tech diagnostic and invasive therapy will migrate to
international markets.
Formerly this competition came from distant markets
in SE Asia and beyond. Now American hospital chains are starting to buy into
Mexico. International Hospital Corp. in Dallas has 5 Mexican locations.
Dallas-based CHRISTUS Health has built 6 hospitals in Mexico through its
partnership with a Mexican chain. Procedures performed cost a third to
two-thirds less than they would in America. People are coming from as far away as
Alaska for bariatric, plastic and cardiovascular procedures, as well as knee
and hip replacements. Many health insurers are adding cross-border facilities
to their networks.
The future will unfold in one of two ways. Either we
will deliver an affordable health care financing system in the private sector,
or we will find health care thrust onto the political appropriating arena.
The former will require a series of dislocating
changes. Innovation will become essential. Increased productivity will be the basis
for the reward system. Health care labor costs, which are out of control,9
will be reduced. Return to an intermediary free market will be unavoidable.
The latter is more likely. Industry inertia and the
primacy of parochial interests will oppose dislocating free market changes.
Costs will be controlled through shortages. Provider incomes will be dictated.
Innovation will be suppressed. Organized criminal activity will increase as
more limited funding is diverted into fraud. Americans with resources will seek
care in the international markets and our best talent will go offshore.
As government power and resource move further into
health care funding, we will find our ability to make our own choices about our
lives, our families and the world around us progressively limited. These
policies will ensure that more health care decisions are made - and more of our
and our children's money is spent - by a progressively smaller group of policy
makers who live far from our communities. They will care little about our
personal preferences, religious convictions or personal aspirations. None of
this could have happened without the failure we have witnessed in the private
sector.
It is not a pretty picture.
VOM
Is Where Doctors' Thinking is Crystallized in Writing.
*
* * * *
9. Book Review: Atlas Shrugged by Ayn Rand is more
relevant today than ever.
Is Rand Relevant?
By YARON BROOK
Ayn Rand died more than a quarter of a century
ago, yet her name appears regularly in discussions of our current economic
turmoil. Pundits including Rush Limbaugh and Rick Santelli urge listeners to
read her books, and her magnum opus, "Atlas Shrugged," is selling at
a faster rate today than at any time during its 51-year history.
There's a reason. In "Atlas," Rand tells
the story of the U.S. economy crumbling under the weight of crushing government
interventions and regulations. Meanwhile, blaming greed and the free market,
Washington responds with more controls that only deepen the crisis. Sound
familiar?
The novel's eerily prophetic nature is no
coincidence. "If you understand the dominant philosophy of a
society," Rand wrote elsewhere in "Capitalism: The Unknown
Ideal," "you can predict its course." Economic crises and runaway
government power grabs don't just happen by themselves; they are the product of
the philosophical ideas prevalent in a society -- particularly its dominant
moral ideas.
Why do we accept the budget-busting costs of a
welfare state? Because it implements the moral ideal of self-sacrifice to the
needy. Why do so few protest the endless regulatory burdens placed on
businessmen? Because businessmen are pursuing their self-interest, which we
have been taught is dangerous and immoral. Why did the government go on a
crusade to promote "affordable housing," which meant forcing banks to
make loans to unqualified home buyers? Because we believe people need to be
homeowners, whether or not they can afford to pay for houses.
The message is always the same: "Selfishness
is evil; sacrifice for the needs of others is good." But Rand said this
message is wrong -- selfishness, rather than being evil, is a virtue. By this
she did not mean exploiting others à la Bernie Madoff. Selfishness -- that is,
concern with one's genuine, long-range interest -- she wrote, required a man to
think, to produce, and to prosper by trading with others voluntarily to mutual
benefit. . .
Rand offered us a way out -- to fight for a
morality of rational self-interest, and for capitalism, the system which is its
expression. And that is the source of her relevance today.
Dr. Brook is president and
executive director of the Ayn Rand Institute.
Read the entire article on Ayn
Rand . . .
Read book
reviews topically . . .
*
* * * *
10. Hippocrates
& His Kin: Cost of Long Term Care
In a study reported by the
MetLife Market Survey of Nursing Home & Healthcare Costs, 2008, it is
reported that long term care averages over $77,000 per year and private
insurance and Medicare cover less that three percent of these costs.
Long term care is primarily in the Medicare-age
population. If Medicare is unable to take care of people that it's designed to
cover, reform should involve shoring up the Medicare deficiencies rather than
extending the coverage to age 55 as some propose.
How much cash does it take to stay out of
jail?
The man
who was facing trial and possible imprisonment told his lawyer, "I know
the evidence is against me, but I've got $50,000 in cash to fight this
case."
"You'll
never go to prison with that amount of money," the lawyer assured him.
He didn't. He went there
broke.
Sewer maintenance increased 42 percent in
Sacramento.
Increased
regulations for maintenance of 1200 miles of sewer pipes, even if only one has
lead, will lead to a 42 percent increase in sewer mileage maintenance in
Sacramento.
Sewer
mandates appear to be nearly as expensive as healthcare mandates.
Looks like increasing taxes
will slowly push us from recession to depression.
To read more HHK, www.healthcarecom.net/hhkintro.htm.
To read more HMC, go to www.delmeyer.net/HMC.htm.
*
* * * *
11. Organizations Restoring Accountability in HealthCare,
Government and Society:
•
The National Center
for Policy Analysis, John C
Goodman, PhD, President, who along with Gerald L. Musgrave, and Devon M. Herrick
wrote Lives at Risk, issues a
weekly Health Policy Digest, a health summary of the full NCPA
daily report. You may log on at www.ncpa.org and register to receive one or more
of these reports. This month, read the informative article Health
Care Reform: Do Other Countries Have the Answers?
•
Pacific Research
Institute, (www.pacificresearch.org) Sally C
Pipes, President and CEO, John R Graham, Director of Health Care Studies, publish a monthly Health Policy Prescription
newsletter, which is very timely to our current health care situation. You may
signup to receive their newsletters via email by clicking on the email tab or directly access their health
care blog. Just released:
Federal
Monopoly of Pharmaceutical Regulation and its Deadly Cost.
•
The Mercatus Center at George Mason University (www.mercatus.org)
is a strong advocate for accountability in government. Maurice McTigue, QSO,
a Distinguished Visiting Scholar, a former member of Parliament and cabinet
minister in New Zealand, is now director of the Mercatus Center's Government
Accountability Project. Join
the Mercatus Center for Excellence in Government. This month, treat yourself to
an article on Government Reform.
•
The
National Association of Health Underwriters, www.NAHU.org. The NAHU's Vision
Statement: Every American will have access to private sector solutions for
health, financial and retirement security and the services of insurance
professionals. There are numerous important issues listed on the opening page.
Be sure to scan their professional journal, Health Insurance Underwriters
(HIU), for articles of importance in the Health Insurance MarketPlace. The HIU magazine, with Jim
Hostetler as the executive editor, covers technology, legislation and product
news - everything that affects how health insurance professionals do business.
•
The Galen Institute,
Grace-Marie Turner President and Founder, has a weekly Health Policy Newsletter sent every Friday to which
you may subscribe by logging on at www.galen.org. A study of purchasers of Health
Savings Accounts shows that the new health care financing arrangements are
appealing to those who previously were shut out of the insurance market, to
families, to older Americans, and to workers of all income levels. This month,
you might focus on the articles on the home page.
•
Greg Scandlen, an expert in Health Savings Accounts (HSAs), has
embarked on a new mission: Consumers for Health Care Choices (CHCC). Read the
initial series of his newsletter, Consumers Power Reports.
Become a member of CHCC, The
voice of the health care consumer. Be sure to read Prescription for change:
Employers, insurers, providers, and the government have all taken their turn at
trying to fix American Health Care. Now it's the Consumers turn. Greg has
joined the Heartland Institute, where current newsletters can be found.
•
The Heartland
Institute, www.heartland.org,
Joseph Bast, President, publishes the Health Care News and the Heartlander. You
may sign up for their
health care email newsletter. Read the late Conrad F Meier on What is Free-Market Health Care?
•
The Foundation for
Economic Education, www.fee.org, has
been publishing The Freeman - Ideas On Liberty, Freedom's Magazine, for
over 50 years, with Richard M Ebeling, PhD, President, and Sheldon
Richman as editor. Having bound copies of this running treatise on
free-market economics for over 40 years, I still take pleasure in the relevant
articles by Leonard Read and others who have devoted their lives to the cause
of liberty. I have a patient who has read this journal since it was a
mimeographed newsletter fifty years ago. Be sure to read the current lesson on
Economic Education: Should the
government do for people what they can't do for themselves?
•
The Council for
Affordable Health Insurance, www.cahi.org/index.asp, founded by
Greg Scandlen in 1991, where he served as CEO for five years, is an association
of insurance companies, actuarial firms, legislative consultants, physicians
and insurance agents. Their mission is to develop and promote free-market
solutions to America's health-care challenges by enabling a robust and
competitive health insurance market that will achieve and maintain access to
affordable, high-quality health care for all Americans. "The belief that
more medical care means better medical care is deeply entrenched . . . Our
study suggests that perhaps a third of medical spending is now devoted to
services that don't appear to improve health or the quality of care–and may
even make things worse."
•
The
Independence Institute, www.i2i.org, is a
free-market think-tank in Golden, Colorado, that has a Health Care Policy
Center, with Linda Gorman as Director. Be sure to sign up for the monthly Health Care Policy
Center Newsletter. Read
her latest newsletter.
•
Martin
Masse, Director of
Publications at the Montreal Economic Institute, is the publisher of the
webzine: Le Quebecois Libre. Please log on at www.quebecoislibre.org/apmasse.htm to review his free-market based articles, some of which
will allow you to brush up on your French. You may also register to receive
copies of their webzine on a regular basis. This month, read The Historical Perspective
of the Current Economic Downturn.
•
The
Fraser Institute, an
independent public policy organization, focuses on the role competitive markets
play in providing for the economic and social well being of all Canadians.
Canadians celebrated Tax Freedom Day on June 28, the date they stopped paying
taxes and started working for themselves. Log on at www.fraserinstitute.ca
for an overview of the extensive research articles that are available. You may
want to go directly to their health
research section.
•
The
Heritage Foundation, www.heritage.org/,
founded in 1973, is a research and educational institute whose mission is to
formulate and promote public policies based on the principles of free
enterprise, limited government, individual freedom, traditional American values
and a strong national defense. The Center for Health Policy Studies supports
and does extensive research on health care policy that is readily
available at their site. -- However, since they supported the socialistic
health plan instituted by Mitt Romney in Massachusetts, which is replaying the
Medicare excessive increases in its first two years, they have lost site of
their mission and we will no longer feature them as a freedom loving
institution.
•
The
Ludwig von Mises Institute,
Lew Rockwell, President, is a rich source of free-market materials,
probably the best daily course in economics we've seen. If you read these
essays on a daily basis, it would probably be equivalent to taking Economics 11
and 51 in college. Please log on at www.mises.org to obtain the foundation's daily reports. You may also log
on to Lew's premier free-market site to read some of his lectures to medical groups. Learn how state medicine subsidizes illness or to find out why anyone would want to
be an MD today.
•
CATO. The Cato Institute (www.cato.org) was
founded in 1977, by Edward H. Crane, with Charles Koch of Koch Industries. It
is a nonprofit public policy research foundation headquartered in Washington,
D.C. The Institute is named for Cato's Letters, a series of pamphlets that
helped lay the philosophical foundation for the American Revolution. The
Mission: The Cato Institute seeks to broaden the parameters of public policy debate
to allow consideration of the traditional American principles of limited
government, individual liberty, free markets and peace. Ed Crane reminds us
that the framers of the Constitution designed to protect our liberty through a
system of federalism and divided powers so that most of the governance would be
at the state level where abuse of power would be limited by the citizens'
ability to choose among 13 (and now 50) different systems of state government.
Thus, we could all seek our favorite moral turpitude and live in our comfort
zone recognizing our differences and still be proud of our unity as Americans. Michael
F. Cannon is the Cato Institute's Director of Health Policy Studies. Read
his bio, articles and books at www.cato.org/people/cannon.html.
•
The Ethan
Allen Institute, www.ethanallen.org/index2.html, is one of some 41 similar but independent state
organizations associated with the State Policy Network (SPN). The mission is to
put into practice the fundamentals of a free society: individual liberty,
private property, competitive free enterprise, limited and frugal government,
strong local communities, personal responsibility, and expanded opportunity for
human endeavor.
•
The Free State Project, with a goal of Liberty in Our
Lifetime, http://freestateproject.org/,
is an agreement among 20,000 pro-liberty activists to
move to New Hampshire, where they will
exert the fullest practical effort toward the creation of a society in which
the maximum role of government is the protection of life, liberty, and
property. The success of the Project would likely entail reductions in taxation
and regulation, reforms at all levels of government to expand individual rights
and free markets, and a restoration of constitutional federalism, demonstrating
the benefits of liberty to the rest of the nation and the world. [It is indeed
a tragedy that the burden of government in the U.S., a freedom society for its
first 150 years, is so great that people want to escape to a state solely for
the purpose of reducing that oppression. We hope this gives each of us an
impetus to restore freedom from government intrusion in our own state.]
•
The St.
Croix Review, a bimonthly
journal of ideas, recognizes that the world is very dangerous. Conservatives
are staunch defenders of the homeland. But as Russell Kirk believed, wartime
allows the federal government to grow at a frightful pace. We expect government
to win the wars we engage, and we expect that our borders be guarded. But St.
Croix feels the impulses of the Administration and Congress are often
misguided. The politicians of both parties in Washington overreach so that we
see with disgust the explosion of earmarks and perpetually increasing spending
on programs that have nothing to do with winning the war. There is too
much power given to Washington. Even in wartime, we have to push for limited
government - while giving the government the necessary tools to win the war. To
read a variety of articles in this arena, please go to www.stcroixreview.com.
•
Hillsdale
College, the premier
small liberal arts college in southern Michigan with about 1,200 students, was
founded in 1844 with the mission of "educating for liberty." It is
proud of its principled refusal to accept any federal funds, even in the form
of student grants and loans, and of its historic policy of non-discrimination
and equal opportunity. The price of freedom is never cheap. While schools
throughout the nation are bowing to an unconstitutional federal mandate that
schools must adopt a Constitution Day curriculum each September 17th
or lose federal funds, Hillsdale students take a semester-long course on the
Constitution restoring civics education and developing a civics textbook, a
Constitution Reader. You may log on at www.hillsdale.edu to register for the annual weeklong von Mises Seminars,
held every February, or their famous Shavano Institute. Congratulations to
Hillsdale for its national rankings in the USNews College rankings. Changes in
the Carnegie classifications, along with Hillsdale's continuing rise to
national prominence, prompted the Foundation to move the College from the
regional to the national liberal arts college classification. Please log on and
register to receive Imprimis, their national speech digest that reaches
more than one million readers each month. This month, read John Goodman on a Prescription for American Healthcare.
The last ten years of Imprimis are archived.
* * * * *
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Del Meyer, MD, Editor & Founder
6945 Fair Oaks Blvd, Ste A-2, Carmichael, CA 95608
Words of Wisdom
". . . truth does not triumph by convincing its
opponents and making them see the light, but rather because its opponents
eventually die, and a new generation grows up that is familiar with it." -Max Planck (1858–1947).
Definitions:
Lawyer: He who is summoned when a felon needs a friend. Lawsuit: A machine
which you go into as a pig and come out of as a sausage. -Ambrose Bierce, The Devils Dictionary
'Tis easier to
make certain things legal than to make them legitimate. -Nicholas Chamfort
Some Recent Postings
Why the Push for Health
Care Reform?
A Disingenuous
Debate on Health Care Policy
BY THE time he posted his last blog, on
February 16th, life was getting rough for Alan Landers. Radiation treatment
every day for tonsillar cancer was filling his throat and mouth with sores.
This made it hard to swallow and harder to speak, though his voice had long ago
sunk to a growl since a botched operation on his voice box in 1993. He was
totally bald, although he had buzzed his hair off himself, since he was going
to go bald anyway.
The worst part wasn't the hospital
sessions. It wasn't even the cancer diagnoses, the first in 1987 and the second
in 1992 when the doctor had beeped him while he was driving, and he'd pulled
off and gone into a 7-Eleven to be told that he had a tumour on his left lung the
size of a golf ball.
Mr Landers never had any doubt about who
was to blame for his condition. The big tobacco companies had intentionally
hooked their customers on nicotine; they had conspired to conceal the fact that
cigarettes were deadly; and he had been lured into "the biggest con of the
20th century". To help shatter the illusion that cigarettes were cool he
visited schools, testified to Congress and gave public lectures, pulling off
his shirt to show the operation scars that wrapped halfway round his back. He
was not involved in the $145 billion class-action suit brought by 700,000
Floridians against Big Tobacco in 1994, the one that was eventually thrown out
in 2006 after generating enough paper to make a stack five feet high in the
Palm Beach County courthouse. But he was one of the 9,000 victims of tobacco
who had been given leave to bring his own case, and in April he was scheduled
to. He had no doubt the cigarette companies would be only too glad to see him
die first, but he was damned if he was going to give them that satisfaction.
His case was all the more powerful
because, for a spell in the 1960s and 1970s, he had been the face of Winston
cigarettes. Dark and brooding, in a tux and with vaguely Hollywood lights
blurring behind him, he was photographed sliding a Winston seductively from its
packet. "I won't settle for anything less than taste," ran the blurb.
Cigarette reliably in hand, he poured champagne, hugged beautiful women,
brought home the Christmas tree. "Winston tastes good like a cigarette
should." Where the Marlboro Man juggled cigarettes with a coiled lasso or
a horse, Mr Landers tended to kick about in New England snow. But on the back
of his smooth smoking, which paid $3,000 a day, he appeared in Cosmopolitan,
GQ and Vogue and was the centrefold in Playgirl magazine. He got
bit-parts in "Annie Hall" and "America's Most Wanted",
lived in Los Angeles, and was treated like a star by his family whenever he came
back to Lakeland. . .
He was desperately ashamed that he had
ever promoted tobacco. To the end, in a rough and ever-fainter whisper, he
condemned it. Whether he could out-argue those clean-cut fireside frolics, with
"real pleasure" dangling from his lower lip, he never knew. He hoped
so.
Read
the entire obituary . . .
On This Date in History - April 14
On this date in
1890, the nations of the Western Hemisphere joined to found the Pan American
Union. This is a good day to be reminded of the spirit of the Good Neighbor and
to look North and South in our international relations.
On this date in
1865, President Abraham Lincoln went to Ford's Theatre for an evening of relaxation
as the Civil War was ending. John Wilkes Booth went to the same theatre that
night also. The rest is history.
On this date in
1912, a great new luxury liner, on its maiden voyage across the Atlantic from
England to New York, struck an iceberg. The ship was the Titanic. The rest is
history, also.
After Leonard and
Thelma Spinrad
MOVIE EXPLAINING SOCIALIZED
MEDICINE TO COUNTER MICHAEL MOORE's SiCKO
Logan Clements, a pro-liberty filmmaker in Los Angeles, seeks
funding for a movie exposing the truth about socialized medicine. Clements is
the former publisher of "American Venture" magazine who made news in
2005 for a property rights project against eminent domain called the "Lost
Liberty Hotel."
For more information visit www.sickandsickermovie.com or
email logan@freestarmovie.com.