Is Health Care Headed for Forced Revamp?

Author: Corey May
Published: July 22, 2009

The US health care system is missing something necessary to level the playing field between the rising costs of medical care, medical research and the cost to treat all persons in emergency situations. Canada has it and Walmart has it, the United States does not. What is it?

It is buying power!
Health care is becoming one of the most burdensome personal issues for Americans, including coverage for experimental treatments and drugs and long-term care coverage. The problem with the independent system is the lack of power in regards to buying with universal access to control costs in public interest. Even though we value our independent choices and the merge to a government based health care system is certainly inferior and undesirable, it would be in the public interest to create some type of system that would allow negotiating and buying power as seen in a company such as Walmart. Private-public mergers and cooperation could create massive buying power to battle negotiating, rising medical costs, well-health care, coverage for minors and experimental treatments.

For example, the Washington Post reports that six hospitals in New Jersey have closed in the past eighteen months and nine others are operating at a loss. Many of these closings are in urban areas where large minority and low-income populations have no medical insurance. State officials in New Jersey are clling for a more “rational and efficient” system according to the Post. According to the New Jersey Hospital Association, 77 hospitals have provided $1.3B in charity care and received only $716M in reimbursements from the state. Governor Jon Corzine (D) signed a bill on June 30th for the 2009 budget allocating only $605M for charity cases in hospital care.

It is apparent from the New Jersey situation that the health-care system has reached a critical point that calls for the bi-partisan efforts of legislators and their cooperation with the private sector. It is known that the largest buying power of our pharmaceuticals and drug research is the country of Canada. Our tax dollars and insurance payments directly support the Canadian health system, because they do have pharmaceutical buying power. A good start would increasing the buying power within the system of our own borders.

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