DMI Blog

Michael Townes Watson

The True Culprits of the Health Care Crisis

Cross-posted from TortDeform.Com
(Originally titled: Pervasive Commercialization of Healthcare)

Although there are still pervasive attempts by the insurance industry to blame the high cost of healthcare on injured patients and their lawyers, the truth lies elsewhere. According to a recent article in the New England Journal of Medicine, the cost is mostly attributable to the “pervasive commercialization” of healthcare products and services. (See http://content.nejm.org/cgi/content/full/358/6/549.)

I am always impressed by the quality of the factual examination and evaluation of the authors printed in this Journal, and this particular author is no exception. He pinpoints the fact that our system has forced limitations on the primary care doctor’s most precious commodity—his time—adequate time to review a chart, take a history, truly listen to a patient. “You can't do all that in 10 minutes.” The result, he says, is missed cues, mistakes, and more tests to compensate for a lack of hands-on examination.

His conclusion is not that we should limit patients’ lawsuits to reduce the cost of healthcare. In fact, he dismisses “excessive litigation and defensive medicine” as non-factors in the escalating cost of medical care. His culprits, rather than lawyers and patients, are “profits, billing, marketing, and the gratuitous costs of private bureaucracies [that] siphon off $400 billion to $500 billion of the $2.1 trillion spent.” An even more serious and less appreciated syndrome is the “set of perverse incentives produced by commercial dominance of the system.”

According to this author, then, it is not the greediness of the trial lawyers or the patients looking for a “lawsuit lottery” who are to blame. It is, instead, the greed of a different group, he says, “the dominance of for-profit insurance and pharmaceutical companies, a new wave of investor-owned specialty hospitals, and profit-maximizing behavior even by nonprofit players.”

This author is not a trial lawyer, not an aggrieved patient, not a lobbyist for a lawyer group. Instead, he is an advocate for universal healthcare coverage. He examined the economics of healthcare systems in other countries where “everyone is covered and there are no incentives to pursue the most profitable treatments rather than those dictated by medical need.” He found these systems to have far safer standards that avoid adverse consequences, as well as avoiding excessive costs.

The author concludes that a universal healthcare system is the best way to match healthcare resources with patient needs. I draw a further conclusion that seems inescapable from this article: The profit motive of the insurance and pharmaceutical industries is a significant incentive for those industries to do everything in their power to perpetuate the profits. That means they blame the injured patients and lawyers for the high cost of healthcare so that they can perpetuate those profits. Their propaganda serves this purpose well.

Michael Townes Watson, author of America’s Tunnel Vision—How Insurance Companies’ Propaganda Is Corrupting Medicine and Law. www.StopMedicalError.com

Posted at 12:00 PM, Feb 22, 2008 in Civil Justice | Corporate Accountability | Health Care | Permalink | Comments (1)


Comments

Healthcare Crisis! Crisis or Corruption?
Is the current healthcare crisis real or a byproduct of a breech of fiduciary responsibility by corrupt politicians fueled by corporate greed? Is it truly a crisis or simply a manipulation of the media by the managed care industry? A contrived issue designed to line the pockets of those in power at the expense of the common American?
While forty million Americans are now without healthcare insurance, profits for the 17 top U.S. health insurers have risen over 114 percent to over $414 million dollars. Profit margins doubled while revenue climbed 21 percent to $9.3 billion on average. Pay for the five top executives at 16 of the health insurers almost doubled to $3 million a year from $1.6 million. Since 1999, the drug industry has given more than 60 million dollars in political contributions. They have spent hundreds of millions more on an army of more than 600 lobbyists to pursue and protect their financial interests.
While physicians are bound by the Oath of Hippocrates to act in the best interest of the individual patient, managed care and HMO entities act only in the best and most profitable interest of the corporation. Managed care networks function like drug cartels under the protection of government bureaucrats and special legislation giving them favored tax status and significant exemptions from antitrust laws. These insurance companies are the only industry given the significant monopolistic right to set doctors and hospital fees, reimbursements, benefits, insurance premiums.
Ill conceived legislation such as the ERISA laws (Employee Retirement Income Security Act) of 1974, which were set up to protect employee pension funds in employer-provided, self-insured plans have been used effectively by managed care and HMOs as a shield to protect themselves against medical liability lawsuits by shifting the liability for medical malpractice to the individual physicians involved. When managed care bureaucrats deny the use of certain diagnostic procedures or therapeutic techniques for cost-containment, the plans and their administrators are exempted from lawsuits of medical malpractice by claiming they are not practicing medicine but merely administering the fiduciary responsibility of their plans.
It is sad that the greatest nation in the world has allowed the subversive creed of political corruption and corporate greed to undermine what was once the most advanced medical community in the history of the world. A community of giving and caring individuals forced to compromise the integrity of their chosen professions to feed the ceaseless greed of soulless corporate and political infidels. Sadder still are the untold number who will die simply from the lack of medical care, denied life by corporate bureaucrats who have been given control over life and death by those elected to protect us from such uncaring evil.
Woodrow Wilson said it best when he wrote, "The government, which was designed for the people, has got into the hands of the bosses and their employers, the special interests. An invisible empire has been set up above the forms of democracy." How long this invisible empire remains in power is up to you. It has long been known the price the common man pays for indifference to political affairs is to be ruled by evil men.

Posted by: Ed Thames | March 16, 2008 07:52 PM


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