Search for the Cure

By John C. Baldwin and C. Everett Koop

Thursday, May 6, 1999

The crisis in American health care is real and getting worse. A record 16 percent of Americans now
have no health insurance -- a grave situation that will not be solved by conventional business models. Indeed, the movement over the past few years to turn health care into a "business" through health maintenance organizations and other stratagems has not worked to the satisfaction of most Americans.

Frustrated, legislators across the political spectrum pursue the notion that legislative tinkering
will solve the problems. But since the derailment of President Clinton's health reform plan in his first term -- and particularly since the elections of 1994 -- the country has slipped or been lulled into a false
sense of confidence that the real and worsening crisis in American health care can somehow be solved by implementation of "reforms" based on such euphemistic concepts as "gatekeepers," "pathways," "preexisting conditions," "risk pools" and other impediments to access -- all disguised as tools of efficient management.

To be sure, health care costs have risen too rapidly in the past 20 years. Highly paid providers and
administrators and exceedingly profitable health care corporations have played a role, though their contributions to rising costs have been less important than the effects of an aging
population and the continual introduction of new technologies. But we must not abrogate our
responsibility to make difficult choices in the vain hope that a "free market," profit-based system somehow will solve the problem for us without our doing anything.

If health care were a business, it would be a strange one indeed -- one in which many sectors of the
"market" could never be profitable. People with AIDS, most children with congenital, chronic or catastrophic illness, poor people, old people and most truly sick people could never pay enough to make caring for them profitable.

Over the past few years, nevertheless, we have often heard that "health care is like any other
product; you buy what you can afford." Most proponents of this idea quickly add that of course "basic" health care should be provided. But what does this mean? Suppose two children, one in an uninsured family and one in a well-insured one, both developed leukemia, a treatable and often curable illness. What is the basic level of care each child is entitled to?

HMO executives properly emphasize that their responsibility is to shareholders. That
responsibility is defined in terms of profit and stock price. The volume and market-share considerations in this "business" require aggressive pricing. Sustained profits, in turn, require aggressive cost-cutting. This results, inevitably, in restriction of access and withholding of care.

Both these things may well be necessary to improve efficiency and cut costs. But do we really want
to relegate such decisions to analysts within the health care industry, or should we assert the public interest in these crucial ethical, societal and medical issues?

We nod our heads when we are told that the percentage of our GNP spent on health care is "too
high" and that inefficiency, the "fat" in the system, results in its providing less effective care than is available in other industrialized nations that spend a lesser percentage. But this argument is specious. The American biomedical research endeavor, supported in the main by the taxpayers, has led the world for more than 30 years and continues to do so. Attendance at any medical scientific meeting anywhere in the world confirms this hegemony and affirms the enormous respect the rest of the world has for American medicine.

Our system is not a failure. The dramatic decline in deaths from heart disease is salient evidence
for the phenomenal success of technologically advanced American medical care for those who can afford it. Our problem is a failure of distribution, a failure to extend care to all of those who need it and a failure to recognize the importance of applying scientific rigor to the problems of broad-based health care delivery. If state-of-the-art American medicine were offered to our citizens in a
comprehensive way, our levels of public health would be unexcelled.

Like education (also, in important ways, not a business), the public health is a national
investment and a crucial one. Could we justify a "privatized" educational system that denied access to slower learners unable to pay -- i.e., the children who need help the most? When you consider that we spend more on leisure than on health care (22 percent more just on recreation, restaurant meals, tobacco and foreign travel), is the percentage of the GNP we spend on health care really so
inappropriate?

The failure in distribution of health care is the product of our tacit acquiescence in the notion
that health care access rightly depends on ability to pay. This idea has become, for many, a point of philosophical and ideological zeal.

It is long past time we acknowledged that broad-based access to health care will be an exceedingly
expensive proposition. We must rid ourselves of the delusion that it is a business, like any other business.

The problem can be fixed. Forming a public consensus on this matter is a mighty and politically
perilous challenge, requiring leadership and the courage to state that adequate health care is an appropriate goal for this country and a vital national investment. These are, indeed, treacherous
waters. Can we get away from the cliches about "socialized medicine" and the hackneyed references
to overly bureaucratized, centralized, inefficient postwar European health systems?

As world leaders in science, business and organizational management, we are capable of something
new. We should maintain our commitment to the advancement of biomedical science for the public good and couple it with the management skills that have created our vibrant, competitive economy, and apply both in creating a national policy of investment in health.

John C. Baldwin is vice president for health affairs at Dartmouth College and dean of its medical
school. C. Everett Koop is senior scholar at the Koop Institute there and a former U.S. surgeon general.

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