Do you know the difference between a "for-profit" and a "not for profit", company? Forget the stated, ideologue difference... do you know what the practical functional, difference is?
Trick question. There is no difference. Not in practical functionality. The one structural difference, is that a not-for-profit company, can't have public shareholders. But beyond that, there is no real difference. Both have to have profit. Both have to sell goods, for a price, higher than their cost. Both have highly compensated executive staff.
Bernard J Tyson, CEO of Kaiser Permanente, collected $2.3 Million dollars in salary according to tax filings.
Seems rather familiar.
Econtalk, had an interview with the CEO of a non-profit hospital chain in the mid-west. The first thing the CEO said, was they have to make a 20% profit. It's not different than a for-profit company.
Again, the only structural difference is, non-profit companies can't have public shareholders. Meaning, that if they want to expand, they can't sell stock in the company, to raise capital, to expand. Instead, all the capital to expand, must come from the profits off of premium payers.
Not-for-profit, companies are not the socialist utopia that the left claims. Most are completely ignorant of how little difference there is.
Worse, Kaiser Permanente, is actually made up of dozens of separate 'for-profit' companies.
Gee, so it seems you equate KP with those hospitals who pay shareholders, thus are we to conclude my point was a distinction without a difference? Well, I don't.
KP isn't perfect, but it doesn't have death panels nor, given the post by boss, isn't "Marxist Socialism". Let's be clear, I used KP as an example, one which might work on an individual state level and even a national level - covering every citizen - but for the profit motive which governs health care in America
today.
That so many who post here equate pragmatic problem solving with Marxism is proof of at least two things: 1) the right wing is composed of parrots who have never thought panotically on this issue, and 2) greed and self serving individuals support & post the propaganda which inculcates parrots into voting against their own best interests.
A caveat to these points is a society which values universal (well most of us) voting rights needs to be informed and educated sufficiently to have a handle on issues as important as health care. I wonder how many know of and understand Chargemaster?
Only a very small mind, would assume that everyone who dares to disagree, must have been influenced by propaganda.
If that's really your view, then why bother posting on here, when automagically everyone who has a different view is brainwashed, thus a waste of your time to talk to?
Doesn't matter what you equate KP to, or not. The fact is, all hospitals have to make a profit, or they cease to exist. That's simply the reality of it, whether you agree with that, or not.
Nor does this have to do with KP being perfect. If there are people involved........... it's not perfect.
Further, your claims about others equating problem solving with Marxism, doesn't prove anything you say. If a system is Marxist in nature, then that's what it is. If I only eat vegetables, I am by definition, a vegetarian. For me to only eat vegetables, and then mindlessly claim that all those who accuse me of being a vegetarian, are really all just self serving, brainwashed, greed Vegan ideologues, is ridiculous.
Again, that's the realm of a very tiny mind.
The reality is, a system is Marxist, if it is based on a system that Marx pushed. The problem there, is that Marxism doesn't work, and never has.
That's why single payer, 'equality' based health care system are terrible. 3 year long waits for basic treatment. People placed on waiting lists, and then deleted. Low survival rates, and so on.
Chargemaster really wouldn't even be relevant, if we actually had a free-market Capitalists based system. Many of the problems in our society, are caused by government intervention, that prevents free-market solutions from happening. This is one of them.
In a pure free-market Capitalist system, where customers paid for services out of their pocket, all of those hidden fees would disappear. You have two hospitals, and both hospitals posts prices, because like anything else people buy, they want to know how much it is going to cost.
Well, if one hospital had a dozens hidden fees, and the other did not, it wouldn't be long before the one with the fees, started having a shortage of customers. The system would self correct.
But of course we have a system, promoted by our government, where the only real customer, is the employer who signs the contract for the business group insurance policy. Thus the patient walks into a hospital not knowing, or caring, what anything costs. Leaving it all to the insurance company.
The only other customer, is government itself through Medicare and Medicaid, which the patients equally don't care, and neither does government, because it's the tax payer that's screwed.
Only the uninsured like me, and those with private plans, actually take the time to consider prices and where they can find quality treatment at a cheaper price.... because we're paying for it.
In all of your words one very important fact is missing - the human element. Consider too, the costs of an epidemic in the US, or worse the pandemic nealy 100 years ago. Is the private sector prepared or even capable of taking on such an event.
No matter how diligent a person maybe, finding he cheapest treatement is not always possible, and in a completely free market doing so may lead one to a charlatan who kills them. A risk I wouldn't take for me or my family.
Preventative care isn't expensive, vaccines made for disease such as polio and other communicalbe diseases have a very high benefit to cost ratio. Catching disease - heart, cancer, diabetes, etc.) early is less expensive to treat and less impactful on the patient.
For profit and not for profit differ, both pay salaries and benefits to employees, both upgrade facilities and equipment, etc. but only one pays stock holders and, one must presume, sees the bottom line equally with services provided and more often frames policies by this metric.
Where I grew up we had a public sector health center a block away - I remember going there with lines of neighbors to get a sugar cube laced with medicine developed by Dr. Salk whose reasearch was founded by the H. of Rep. Committee on Scientific Research.
Today research such as that done by Salk is done with the advice and permission of lawyers to better protect the investment of stock holders and secure massive profits for future discoveries by patents. There is a place for both private sector and public sector participation in the world of health care, but profit can sometimes be evil, if evil is the conscious result when life saving medicine is sold at prices beyond the means of the patient.
The human element. Sounds like Atlas Shrugged. You should read that.
I did, I think when I was in the 8th grade. I also read Anthem and The Fountainhead around the same time. Some of her ideas were appealing to me at that age, but even at that age allowing a rapist to become a hero was offensive.
The private sector is more prepared than you think, but less prepared than you want.
Are you sure? Which or what private sector tracks the annual strains of flu, or is it only the Center for Disease Control?
By default, the private sector is reactive to prices, due to supply and demand. As demand for X product goes up, prices go up, thus causing more supply to be delivered.
The Private Sector is reactive to prices? Or is colusion at work and supply limited to increase the profits?
After Katrina, areas without power had a high demand for ice, to keep their refrigerators cold. As a result, a group of guys rented a refrigerated truck, got some chain saws to cut fallen trees, and loaded the truck with ice, and sold the ice for $12 a bag.
Gee, how nice of them.
Ironically, government does it's best to prevent the free-market private system from providing during emergency situations. After selling ice for a day, the police showed up, and said they were violating gouging laws, and as a result, the no one could get any ice anymore.
Gee, why do you believe "gouging laws" exist?
Similarly, a store in the Katrina zone, paid extra money to have gas power generators shipped in, and sold them at a loss. For doing this, the store was condemned, threatened, and the owner said he was never do anything like that again.
Really, have any evidence to prove this is a fact and not an urban legend, or a lie?
So the free-market capitalist system does respond to crisis, but is largely attacked for it.
Attacks are part of the current American ethos. Does the "free market capitalist system" need therapy?
Let's talk specifically about a health crisis for a second.
In this specific case, you are in fact, absolutely right. The private market has no ability to help in such cases...... because of government.
In the 1950s, when the Polo Vaccine was created and sold, cutting Polo rates by 90%, the R&D time from testing to retail, was merely 2 years.
The Polo vaccine was brought to market privately, sold and administered privately, and everyone made a profit, and the public was better off.
Better read the history of the polio vaccine; my family, school mates, neighbors and I all received the vaccine free at the health center in our neighborhood.
Today, Prevnar, the top vaccine given to children, required 14 years to get to market.
Yep, the lawyers want to make sure the vaccine is cost-effective (no suits) and that profits are protected (patents)
Additionally, in the 1950s, doctors paid a few dollars for each vaccine, and charged customers out of pocket, $10 to $15 for each.
Evidence?
Vanishing vaccinations Opinion The Register-Guard Eugene Oregon
Today, very few vaccines are paid for out of pocket. Instead, 60% of all vaccines are purchased through the government, which pays a fraction of the free-market price. Doctor reimbursements for vaccines are extremely low, from the government, and insurance companies. A Harvard survey showed reimbursements at between 40% to 100% of cost. None showed a profitable reimbursement. As a result 40% of doctors no longer offer vaccinations. No profit, no service. Welcome to the real world.
Equally, prices across the supply industry are extremely low, even while the cost of producing vaccines has drastically increased.
And that in turn has resulted in most companies leaving the market. No profit, no vaccines. The NNII reports from the massive shortages of 2006:
Vaccine Supply and Shortages - Immunization Issue
There is only a single US producer of MMR, PCV7, varicella vaccine and now TIV. (all the others left the market)
Two of the four influenza vaccine manufacturers during 2000 either withdrew from the market entirely or experienced substantial production delays leading to both a shortage in the supply of vaccine and problems distributing the vaccine equitably to all providers. (why would they leave the market if they could make a profit? Because they couldn't make a profit)
Problems in complying with industry manufacturing standards (called “current Good Manufacturing Practices” or cGMP)—which evolve over time—is not uncommonly a cause for vaccine to not reach the market, including the current influenza vaccine shortage. For example, failure to assure compliance with cGMP led to the problems with influenza vaccine supply in 2000, noted above. (government regulations and controls imposed on the manufacturers killed production)
In 2000 there were four manufacturers of inactivated influenza vaccine, one of whom left the market. There were two producers last year and there is but one this year. (4 manufactures down to 1)
So why are the government, and insurance companies, cutting preventative medicine?
Quite simply, because preventative care is a net negative. Not a positive.
As an individual, that may seem a good trade. $25 Vaccine, verse thousands of dollars if you get the illness not vaccinated. I get that.
But the problem is, to the government or an insurance company, it's not a net savings. To vaccinate 100 people, would cost more than treating the 10 individuals who might get the flu.
First, it doesn't make you illness proof. A portion of those vaccinated will still get the illness. But you are also shelling out thousands of dollars for people who never would have gotten the illness even without the vaccine. Nearly all vaccines cost more, than the cost of treating people who get sick.
Between the fact that government had drastically increased the cost of making vaccines, and the fact government has nearly eliminated profit from vaccines, the answer to your questions is no, the private sector can not possibly handle a real health crisis today. Not a chance.
Of course, neither can government. That's why every time there is a big flu outbreak, there are massive shortages of vaccines.