EternalHoH
Posts: 791
Joined: 5/30/2010 Status: offline
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I think he is too quick to blame the high cost of healthcare today simply on a government bureaucracy. In Ron Paul's medical world of old, there wasn't any private sector investors involved in the mix, either. Most hospitals were affiliated with non-profit entities like municipalities, churches, colleges, and organized charities and were often built using municipal bonds. Facilities were simple looking, utilitarian, functional. The goal was to minimize disease rather than manage disease, as that approach minimized costs. Today, those non-profit facilities have been bought up by for-profit investors. The need to service those investors has added a parasitic layer of costs that did not exist before. With new access to private money, the facilities have been renovated and now rival the appearance of palaces owned by middle east dictators. Costly diagnostic machines with a heavy per-use pricetag must now be kept busy. Close to 30% of hospital stays today are unnecessary, and they only happen because the beds are there and the need to profit off those beds exists. The focus has shifted from avoiding disease to inviting disease in order to profit on managing it on a long term basis. I think its a bit of a stretch to blame a government bureaucracy for all of this. At what point does the finger of blame start to point at the private sector? Healthcare has wrongly become just another area for investors to invest in. Just like housing wrongly became an investment vehicle. After we gutted the manufacturing base, the appetite for investor (welfare) returns has outpaced Main Street's ability to generate the needed returns. So the investment world got creative to fill that void and keep the welfare checks coming in, and suddenly, all these aspects of daily life, from things like owning a house and treating disease, suddenly had to be converted into fertile ground for investors to participate in.
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