The Futility of Trying to Grow

Daily Observer

July 12, 1974

 

 

            Snodgrass wanted to build a hospital.  He spoke to Lapius directly, because he knew I didn’t have the money to invest.

            “What do you say, Simon, will you come in with us?”

            “With who?”

            “We have a group of about 20 doctors.  We can get the financing from the bank.  The plans are drawn.  Would you like to see them?”

            “No.”

            “Simon, that’s not like you.  You know we could use another hospital around here.”

            “Sure you do.  Sure we do.”

            “So look at the plans.  Join us.”

            “No.”

            “Why not?”

            “You are wasting my time.”

            Snodgrass was hurt.  Lapius had never spoken to him that abruptly before.  “You are not consistent, Simon.  Why would it be a waste of time?”

            “Because they won’t let you build a hospital.”

            “Who won’t?”

            “They.”

            “Who is they?”

            “How do I know who ‘they’ are?  All I know,” Lapius said emphatically, “is that you can’t build it.  It’s against the law.”

            “Against the law?”

            “Whatever law says that you have to have a certificate of need to build a hospital.”

            “So we’ll get a certificate of need.  Surely a formality.”

            “That’s what you think.  It is a very difficult thing to obtain.”

            “We can prove there is a need.”

            “But no one asks you to prove that.  The state government will tell you whether or not there is a need.  They don’t want you to compete with the present hospital.”

            “Why not?  The competition will do them good.”

            “The government and the insurers.  Medicare and Blue Cross don’t want competition.  They don’t want empty hospital beds.  They don’t want you to build a hospital near the present hospital because with empty beds the per diem cost per patient goes up.  They are afraid that your hospital will take only paying patients and leave the other hospital with welfare patients.”

            “Can’t we promise to take all patients who apply?”

            “Sure.  But they won’t believe you.”

            “Can’t they pass a law that says that all hospitals have to take all patients that apply?  That hospitals can’t discriminate on the basis of a means test.”

            “There are those that say such a law would be unconstitutional.”

            “But preventing us from building a hospital also seems to be unconstitutional.  That smacks of restraint of trade.”

            “Of course it does.”

            “We can fight that.”

            “Sure if you are willing to spend $20,000 or more in legal fees.  After all, a chicken farmer upset the NRA under Roosevelt.”

            “Well then, maybe we should fight that in the courts.  Would you join us then?”

            “I’ll contribute $1,000 for the lawyer.  Now get the rest from your partners.  But short of a law suit, you’ll never get the certificate of need.”

            “Why should the community be robbed of extra medical services, Simon.  The whole thing is unfair.  We are short of beds, every patient lying on stretchers in the halls knows that.”

            “Yes but there aren’t enough of them to create a stir.”

            “Do you mean to tell me, Simon, that the government is subsidizing a monopoly in health?”

            “Yes.”

            “That’s outrageous.  Why are they doing this?  The community knows it needs more services.”

            “Because the community isn’t paying the bill.  The government is.”

            “But it costs them more to administrate the system than it would to allow competitive health institutions to exist, even if some of them lose money.  I can’t believe an unreasonable system such as this would be sanctioned by the government.  Surely there must be a way out of this.”

            “There is, Snodgrass, there is.”

            “Good old Lapius, I knew you were only pulling my leg.  I knew you had something up your sleeve.  How can we get around it?  What’s the gimmick?”

            “The three mile limit.  Buy one of the surplus hospital ships that are in mothballs.  Modernize it and anchor it three miles at sea.  We can have hydrofoil ferry service to and from the ship, and helicopters for emergencies.”

            Lapius, a brilliant idea,” Snodgrass gasped in admiration.

            “Only it won’t work,” I interjected, annoyed at having been ignored for so long.

            “Ah yes, Harry is right,” Lapius said, robbing me of my moment of glory.  “It won’t work.  The government wants to extend the coastal limits to 12 miles.”

            “And there is talk of 200 miles,” I added.

            “That wouldn’t be too bad,” Snodgrass said thoughtfully. He was undeterred.  “We could anchor the hospital to an oil drilling tower.”