Sane Perspectives on Healthcare

Last updated on: March 10, 2017 at 6:36 pm by Elizabeth Scalia

Sane Perspectives on Healthcare 2017-03-10T18:36:40+00:00 Elizabeth Scalia

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Watch Rep. Paul Ryan making sense, and clearly confusing Rep. Louise Slaughter:

H/T

Meanwhile, I wanted to share this, with a Hat Tip to Deacon Greg Kandra. He posted an excerpt from Cardinal Seans thoughtful musings on healthcare, and then tipped me off to this comment from one of his readers -although I have seen it on several sites, today, so I am not sure where it originated- which I am reprinting in full, because it is sane and sensible:

I have been a doctor for 19 years. 4 years in the Army and 15 years in private practice. I belong to a doctor owned group of approx 350 doctors in a multi-specialty practice. We employ 4000 people. In addition to being touted as one of the very best clinics in the nation (Acclaim Award winners) we have donated over a million dollars to the local city in grants, scholarships and charity. Regularly voted as top places to work by our employees. US healthcare at its very best. I am very proud of what we do and we provide tremendous care and value to our patients.

We seek to maintain a 3-5% profit margin annually. We operate in the very precarious business model of enormous volume, low margin. As any business owner knows, this is high-risk-low-margin of error model. Consequently any small changes to cash flow vectors, mandates widespread internal policy and practice corrections. Tiny changes = massive consequences.

As many people may know, Medicare and Medicaid, the current government paid ‘insurer’ – pays approximately 70% of the cost of care. ie its more expensive for doctors to care for these patients than we get reimbursed for. Say you are a contractor. Imagine the government mandating a significant number of your jobs whereby your out of pocket costs are ~ 30% + greater than your income. That is Medicare and Medicaid. In perspective, our group alone, year 2008 lost ~$12 million caring for our government patients. This is despite taking over 1 1/2 years to help move our fee-for-service traditional Medicare patients over to Medicare Advantage plans, which are privatized versions of Medicare that reimburse better…still not covering costs…but lessen our losses significantly.

Many people ask, why do private health insurance premiums continue to escalate? The liberals want you to believe its a combination of profiteering and waste. When in fact its due mainly to two other processes. The first is obvious: every year it costs more to care for patients and premiums are trying to keep up with this rising cost. But secondly, and less often discussed, is that every year private delivery systems lose more and more money caring for our government patients. Someone has to make up for these losses in order for your hospitals, clinics, nursing homes, pharmacies, group practices to remain solvent and profitable. Every year these delivery systems open their books to the private healthcare insurers – and the insurers must – they must in order for the entire system at large to stay functional, increase the amount they pay out to cover these losses. If they dont, both the delivery systems and the insurers die. So to keep the boat afloat, the payouts by private insurers MUST increase to subsidize the ever increasing losses doctors incur by taking care of our government patients. So, in a way, you could say that your increasing premiums are a tax that you are paying to cover the losses that are Medicare and Medicaid. It’s a clear and inarguable private subsidation of government cost. Enough said on that.

So to really feel the consequence and full impact of Obamacare, one must simply see the economic dominos. Most people can see how this bill will rapidly reduce private insurance plans and rapidly expand government plan patients. And take whatever number that is being reported, and multiply that by 3. That has been the experience in both Mass and Hawaii. Both government plans were overwhelmed with the enrollees as they significantly underestimated the government migration.

Ok, so now- how can anyone not see the obvious outcome? Government patients = significant loss of profitability. Initially the private insurers will do their best to continue to subsidize this loss, and there will be a huge escalation of premiums. But within a few months this will be unsustainable. Its a cycle that cannot be stopped. Higher premiums = higher recidivism to government plans = higher premiums etc. Within months, every single hospital, every single doctor office, clinic, nursing home, pharmacy – every delivery system reliant on private insurers will no longer be profitable. ie they will go bankrupt. These will most certainly be the headlines to come: Hospital XYZ shockingly announces bankruptcy; Hospitals can no longer remain open; Clinics across the country file for bankruptcy; Loss of Pharmacy access shocks the Nation; Doctors going bankrupt en masse creating healthcare delivery and access to care crises; Where can you go to get care?; Loss of access reported Nationwide

Yes a crises. A crises of access due to widespread business failure. You will not be able to get care for as long as it takes for the government to devise their emergency bailout package and as long as it takes for those insufficient dollars to try and get those doors back open again. But it will be too late, and it will be too expensive. There is absolutely no way that our government can capitalize our entire healthcare system. Try as they might, only a percentage of what we have now will ultimately survive. And those that do survive will be a shell of what they once were. The conditions will be frightening, and the consequences will be dire. The degree of disarray will be unimaginable and the underlap in access to care will be gaping.

I will not expand this discussion to predict what this means to our economy at large because I am not an economist. But anyone can be close to predicting what I am suggesting. Factors such as loss of work hours due to illnesses not treated, pressure on all the other private business models; let alone the out and out loss of enormous capital via the bankruptcy of this entire healthcare industry can clearly be the death nail to our country and imo is a clear and present threat to our very sovereignty. This can make the housing collapse look like a speed bump. This will be massive and rapid and lethal and complete.

I am not certain why this very obvious outcome has not been openly discussed more often – ie the rapid and massive bankruptcy of all of your health care providers and their delivery systems. But this is the inevitable outcome should this bill ever become law and implemented.

Thanks for reading. Please ping, copy and email your friends and try and get this word out. I know it’s a very late hour – but I do think the implementation is not an inevitability as multiple lawsuits may keep it on hold for a while – so public opinion will still be vital for many more months to come.

Unbelievable times. Please do your part and email and make the phone calls. This plea comes an honest and heartfelt love of our country and its citizens, and an honest and heartfelt love of my profession, avocation and the welfare of my patients.

Send this around to everyone you know. Read it to your neighbors. I’m filing it under “critical thinking.” Check back for updates:

UPDATE 1:
Althouse is posting Meade-taken-Pics from the capital protest. Meade is very cute, but this is my fave:

UPDATE II:
Apparently “deem and pass” is dead. I think a buncha people marching on DC may have something to do with that. Or, Pelosi has the votes to pass.

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