COST ANALYSIS LONG OVERDUE

Ocean County Observer

December 10, 1982

 

Under a banner headline “Experts Say Medical Costs, Draining Nation’s Other Needs, Must be Curbed” The New York Times on March 28, 1982 inaugerated a series of five articles on the high cost of medical care.

 

We have heard this song many times before. Everybody is talking about it but no one knows exactly what to do about it.

 

The general assumption now is that the high cost of medical care, about 10 per cent of the Gross National Product (GNP) is bad for the country. The figure of course is spurious because the GNP has slumped during recession so that even if the medical costs remain stable their percentage share of the AGNP will increase as long as production is slumping.

 

I think what is long overdue is a proper analysis of the costs, instead of the whinnying from government satraps  and their hired committees bemoaning the fact that it cost money to give Americans the best care that money can buy. I thought that was what this country was all about.

 

The article states that five years ago Dr. Marvin Moser headed a committee of doctors who, working under government auspices, determined that in most cases the customary hospital diagnosis and treatment of hypertension was unnecessary and that today outpatient treatment is the norm for that condition. Well, sad be it to tell for those of us whose tax money was squandered on the obvious, outpatient treatment for hypertension was the norm before the committee convened.

 

The article goes on to enumerate  $9,000 of hospital charges for a patient with bronchitis. Well that probably is also fallacious. The $9,000 is what the hospital charges to arrive at a third party per diem payment figure which is much lower. The hospitals pad their charges to arrive at a negotiated settlement with the third party. Next time you get a statement of charges from a hospital read it carefully. It says “This is not a bill”. It isn’t. It’s malarkey.

 

The article says that industry could pay higher wages if it weren’t for the increased cost of health care built into their labor contracts.

 

That is a misrepresentation.  Industry didn’t want to shell out any more  for wages so they built health care into their union contracts, figuring that health care costs would be stable. Unfortunately business got bad and the money paid for health care started to appear to be expensive. Business got so bad not because of the health care contracts but to al large extent because of the ineptness of the American business men who lost large chunks of domestic and foreign markets to the Japanese and others. The article expresses surprise that workers with health care contracts use them to take care of their health. Unfortunately a person without health insurance too often neglects his or her health, or devotes money to the care of the kids at personal sacrifice.

 

Is health care and medical care costly. Of course. It is a very personalized service.  A single individual going to the hospital for a medical illness is catered to personally by highly trained specialists, nurses as well as dieticians and therapists of all kinds. Many who formerly would have died now survive their illnesses. Death is the least expensive outcome of an illness. The attempts to publicize the high cost of medical care and to reduce them by cutting back on the availability of health care facilities has an ominous ring. Medical costs can be cut to zero if medical care is no longer rendered.

 

Of course in the length and breadth of the article no one addressed the question as to why high health costs are bad for the country. Certainly the salaries and costs are moneys internally circulated. The health care industry is a large employer, possibly the largest in the country and generates lots of tax dollars.

 

The minimum wage is certainly a factor driving up health costs. There was a time when most of the hospital maintenance and kitchen work was done in return for room and board.

 

What else drives up health costs? Five hundred thousand injuries a year suffered in automobile accidents; ten million alcoholics in the country who are at risk of chronically diseased livers, hearts and brains.;  a well subsidized tobacco industry that causes an un-measurable amount of heart disease and a measurable amount of lung cancer.

 

And where else does the money go? To finance expeditions in Viet Nam, El Salvador, revolutions in Chile, an elaborate spy system. It goes to defense and after all, what are we defending? Isn’t it the right to health and happiness? Aren’t we defending the right to have the best medical system in the world.

 

I think what peeves the government economists about the cost of medical care is that the money spent doesn’t purchase a palpable product. And the economists really don’t care how we feel; unless how we feel cuts back on our productivity.

 

President Reagan wishes us well but doesn’t want to pay for it. And we as individuals inveigh against the cost of medical care until we as individuals get sick.

 

The New York Times article intimates that most of the medical care rendered is unnecessary. Maybe, but that fact doesn’t emerge until the illness is over.

 

No patient in my experience has ever come to my off ice saying “Doc you gotta save me money!” Tghe patient may ruminate baout the cost of illness after it is over and done with, but at the beginning the patient says “Doc, you gotta help me”.