The Progressive Patriot

MARCH 27, 2010 6:08PM

Yankee Ingenuity, Run Amok.

Rate: 7 Flag
Do you remember Vasili Alexeyev, the Russian Olympic Lifter who reigned in the super heavyweight class from the late 1960's till the late 1970's?  I was in college around that time and was taking a course in Russian History.  My professor used Alexeyev to as an example of Russian ingenuity.  In the Soviet system, all athletes were amateurs, since the concept of a professional sportsman was evil capitalism. However, the Soviets did reward athletes with monetary awards if the athlete broke a world record.  Our professor pointed out that in practice sessions, Alexeyev would often shatter the existing records by several kilograms, but during an official event, he would break the record by the smallest allowable margin.  The reason was simple.  If Alexeyev broke the record once by ten kilograms, he would get one bonus, but if he broke it ten times, at one kilogram per event, he would receive ten times the bonus. In this way, Alexeyev was more of a businessman than an athlete. Sports was only a means to an end, and that was cash, not fitness.   

 

In the USA, we’ve managed to do a similar thing with medical care with a perverted use of Yankee ingenuity.  Our doctors are paid by the procedure.  There is no money to be made with healthy patients.  Our hospitals make money by filling beds and running expensive tests with exotic equipment.  Studies have proven, time and again, that areas with a dense population of hospitals and testing labs have higher medical costs but no better health of the citizens that areas with fewer hospitals and testing labs.  It stands to reason that when a hospital buys a ten million dollar machine, it expects a decent ROI, in the year end report to the stockholders  Our pharmaceutical companies are run on a business model of pushing product out the door, or meeting sales goals, or  hitting Wall Street expectations. I’ve read the mission statements of some Big Pharma companies and laughed out loud, especially when I hear them try to tell me that their mission is to help Americans lead healthy, productive lives.  Yeah, right.  Do they really expect me to believe that when a sales rep for their company is being evaluated for a raise or promotion, they track how many lives were improved?  Please, spare me the bullshit.  Big sales numbers bring promotions and higher earnings.  Nothing else matters.  That’s the way it is with Ford Mustangs, Vegematics, Jell-O Pudding, and Bextra.  You remember Bextra?  Pfizer paid the largest criminal fine in U.S. history: $1.19 billion for illegal marketing of this drug.  But Pfizer sold a lot of Bextra with the illegal marketing and the fine was not enough to offset the exta profit, so Pfizer complied with it's real mission statement: sell more product.

 

Of course, all this contributes to health care costs.  All the television ads for prescription drugs you watch, all the hospital billboards you  see, all the insurance company brochures you get in the mail, and all the lavish “educational” meetings provided by drug companies to doctors and other health care professionals in places like Bermuda, Las Vegas, and Miami all contribute to the high cost of health care in America. 

 

It's amazing, isn't it?  In America, we’ve managed to do what no other Western industrialized nation on earth has done, and that is make medical care a business.  In the USA medical care is just a means to an end, and that is cash, not wellness.

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Careful, Mr Conservative, too much truth and you'll end up ex-communicated like Chris Buckley and David Frum.
I just discovered your blog this evening. I am so glad that I did. I haven't read all your posts, but the few that I have read show a remarkable command of the topic/issue. I really wasn't tipped off by your blog title in that I didn't recognize your the Jonathan Swift satire in your posts right away. I know, that's quite a comparison, but I have to guard against effusion when commenting on your blog.
This was one of your brilliant pieces, and your background in business/sales really gives you the credibility to make your point.
Isn't the conservative position that the free market works for everything--that promoting competition drives down prices and self-regulates itself? Are you saying healthcare should NOT be treated like any other business? Damn, you've only been on OS for a few weeks and you're already starting to sound like a left-leaning socialist.
Mr. MeatMonkey, I know of no such conservative principle that capitalism (what you call "free market") works best for everything.
Yes, that does seem to be the template of today's version of "American conservatives" and the reason I have gone feral to that movement. And no, I do not favor the classic socialist model. We have seen the spectacular failure of socialism with the implosion of the USSR and we have just witnessed the spectacular failure of capitalism implosion of the world economy in our Great Recession.
So what's the solution? The first step is for both sides, left and right, to admit their failures and work together towards a new solution. My conservative nature tells me we ought to look back on what worked and build on that.
Well, I don't think anyone but lunatics are trying to make a case for the USSR model, but what's your opinion of the social democracies of Western Europe?
Tom, you asked: "..what's your opinion of the social democracies of Western Europe?"

I have a very dear friend who lives in Denmark. I've known him since grade school. He tells me that although his taxes are higher than they are in the USA, his security is much higher and there is far less anxiety. I've also read recent reports that Denmark is home to the happiest citizens in the world - in large part because there is security and not the dramatic wage disparity that we now have in the USA. I also have friends in France who tell a similar story and I have been to France a few times and always enjoyed the kindness and hospitality and calm nature of the French people I have met. I'd say that the European democracies are further ahead than we are when it comes to actual freedom and the pursuit of happiness - despite the rantings of the Tea Party people. Europeans, as a group, live longer than we do, work less than we do, have more discretionary wealth than we do, and are happier. There is still lots of room for improvement, but they are on the correct path.
For Tom: http://www.forbes.com/2009/05/05/world-happiest-places-lifestyle-travel-world-happiest.html
"Yes, that does seem to be the template of today's version of "American conservatives" and the reason I have gone feral to that movement."

I found your blog a couple of days ago...love the term "feral conservative", and it's about the closest thing that describes me as well.

Keep up the great work...since I started reading, you've pretty much hit the nail on the head.
All of this is why the Nixon administration set up health planning agencies to limit needless duplication. That was the best job in the world for me, and I estimated that I saved taxpayers well over $100M while I was employed. But Ronald Reagan decided that medical care had to be subject to the free market, so he fired my kind. :(
It appears there is hope for a real conversation here
"The first step is for both sides, left and right, to admit their failures and work together towards a new solution."

Well said, sir.