Health Care Reform

Happy Monday everyone. Back from a fun weekend in Regina where I ran into a lot of friends and watched a good football game despite the result.

The American news in recent weeks has been talking about a bill to reform their health care system. Naturally, this is a very emotional debate that contains a lot of rhetoric and not a lot of information of what this reform actually entails. The "Con" side of the debate often involves vilifying "socialized" systems in countries like Great Britain, Canada, and France. I won't get into that today, but in a later post this week I will discuss the comparisons between various health care systems in industrialized nations.

No health care system in the world is perfect, our system and the American system are glaring examples of that. The American system is a reflection of their culture in that everything should be profit driven. The argument is that being profit driven increases efficiency and fosters creativity and innovation. Health care is not a typical industry however, and the Americans have missed the mark incredibly on efficiency. Currently, the US system costs more per capita then the Canadian "socialized" system does.

However, where they haven't missed the mark is innovation. US companies are by far the leaders on innovation in the health care industry for new surgical techniques, tests and pharmaceuticals. It is likely that the drive for profit has fostered this. The US healthcare industry has places such as the Mayo Clinic and Cancer Centers of America who are specialized care centers that provide care for cancer and other deadly diseases that is second to none in the world. Are these centers cheap? Not by a long shot. However, it is nice to know that this care is available.

What has happened over the last several decades is that the rest of the industrialized world has piggybacked off of American health care innovation to make their own systems better. I remember twenty years ago, my father was very ill and one of his three surgeries to fix him was to remove a benign tumor off his adrenaline gland (the tumor, although benign was causing issues with blood pressure and creating chemical imbalances in his system). The surgery to fix this was very invasive, and he still walks around with a large scar that surrounds nearly half his torso. Today, that same procedure can be done via an incision a fraction of the size and lasers. The new technology is more expensive, but the greatly reduced recovery time makes for a much reduced hospital stay and cost savings. Not to mention the improved quality of life afterwards.

I am not against parts of health care being a "For-profit" enterprise. However, the struggle for the United States will be to ensure that any much needed reform does not stymie innovation. As distasteful as it is to some to make money off the suffering of people, increasing profit margin is a much better motivator for innovation and efficiency than cost savings. If the current administration can accomplish quality health care reform that genuinely makes the system better for the majority of Americans, it will be a monumental achievements. Think of the stakeholders that potentially have something to lose by health care reform - insurance companies (both for healthcare and malpractice insurance), trial lawyers, pharmaceutical companies, and big healthcare management firms such as Aetna. All incredibly powerful lobby groups that have an interest in keeping the system pretty much the same.

That's all for today.

Cheers.