August Newsletter

VOLUME 28, NO. 8

The speech was given, in the mid 1970’s, to a Portland Chamber of Commerce forum by a doctor.  He opened his presentation with the following statement (which is paraphrased).  Twenty years ago a man had a serious heart attack and was taken to the hospital emergency room.  Before the day was out, he died.  Not a very big medical bill.  Today (in the 1970’s) the same case would result in a trip  to the emergency room; after treatment and a few days in the hospital, the person returns home to resume a normal life.  Today’s case results in a considerably higher medical bill.  The doctor’s point was that a more capable medical industry comes with a higher cost.  This is a point that is being almost totally overlooked by the political class in the debate on medical care and health insurance.  Health problems that were a death sentence several years ago are routinely treated today.  

The benefits of modern medicine must be retained and some facts need to be kept in mind.  United State’s residents have the best medical care in the world.  The elderly in this country routinely get medical procedures that are not available to older residents of countries with government run medical operations.  Medical care is available to all residents of this country, regardless of an individual’s ability to pay.  The medical and pharmaceutical industries in this country are responsible for a large portion of the world’s advances in medical technology. 

The same governments that want to reform health care have taken several steps to increase the cost borne by the average worker and his health insurance carrier.  Through the years, the Oregon State Legislature has mandated more and more medical procedures and treatments be covered by all health insurance policies written in this state.  Cost shifting has an even larger impact.  The Federal Government does not pay full price for treatments under Medicare and Medicaid.  Silverton Hospital, one of the Nation’s top 100 hospitals, receives from Medicare, on average, 47% of the amount a private Health insurance carrier would pay for the same procedure.  By Federal Law, a hospital emergency room has to furnish medical care to any US resident who has a need for medical care, regardless of his ability to pay. 

What should the government be doing about the two major problems with the United States medical industry, high cost and uninsured residents?  First recognize that US medical care is better than that in any other country.  We have a much faster response time, more procedures available to all residents and leading edge medical technology.  This last factor means that unless medical care is rationed, costs will continue to increase.  Government should do two things to make sure this ever-improving medical care is available to all citizens.  One is to make sure the government is doing nothing that impedes the success of the private sector.  (Listing all the programs pursued by government that counter prosperity would take several Memos.)  The other is to reduce unnecessary government expenses so more money will be available to cover the cost of always improving medical technology.  We have the best medical care in the world.  Let’s keep it.