On half-measures (was Re: [lbo-talk] response to Fitch on single-payer)

Gar Lipow the.typo.boy at gmail.com
Tue Feb 7 18:16:39 PST 2006


On 2/7/06, John Lacny <jlacny at earthlink.net> wrote:
>
> Doug Henwood:
>
> > The SEIU's health care project, Americans for
> > Healthcare, says nothing about single-payer.
> > They're now pushing Maryland-style legislation,
> > which is a pretty half-assed approach.
>
> If you want to talk about stuff that's half-assed, let's talk about
> single-payor, which in this country would socialize insurance but leave in
> place all the ripoff artists on the provider side of the ledger -- and I'm
> referring not just to the big for-profits like HCA or Tenet, which probably
> have whole departments of people who specialize in ripping off the
> government, but also the non-profits (including very large chains,
> especially religious and academic ones) who are almost as bad save that they
> do not pay taxes.
>
> Presumably a single-payor system would have to have a prospective payment
> system similar to the DRG system we have now, and with what the Whiskered
> One would have called "the anarchy of production" still reigning on the
> provider side, that would still mean not only graft but systemic inequities,

All proposals for single payer at the Federal level call for the elimination of for-profit hospitals and large clinics. All proposals (even the state level) call for global budgets that separate capital from operational budgets - which means that the single payer system would control major investments. If an area did not have enough hospitals a single payer system would provide capital investments to open some - probably by funding new hospitals. If an area had excess hospital capacity it could force the lesser quality hospital out of business by starving it of funds. In terms of specialists in screwing payers, it could limit the number of such employees as a condition of eligibility for funding. Also the simplicity of the billing system would tend to reduce the margins for that kind of game playing.

A single payer system gives you monopsy, and control of capital investment by the single buyer. In essence providers, while nominally independent, become branches of the single payer system. So single payer is not a compromise. The only part that retains any true independence are the smaller private practices. France, for example has a single payer system rather than primarily a national service. Yet France's health care is some of the best in the world, and while not as frugal as (say) the U.K' s national health still constitutes a comparatively modest percent of GDP.



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