Those whose investments drive understanding, can lead us to understand the key issues facing any future healthcare reforms.
Interview and discussion with Dr. Robert Glassman of the OrbiMed Advisors. He talks about the health-care reform President Obama is pushing. (Bloomberg News)
OrbiMed is the world’s largest healthcare-dedicated investment firm, with approximately $5 billion in assets under management. OrbiMed’s investment advisory business was founded in 1989 with a vision to invest across the spectrum of healthcare companies: from private start-ups to large multinational companies. OrbiMed manages the Caduceus Private Investments series of venture capital funds and a family of public equity investment funds.
Seven Questions About Health Care
by Charles Wheelan, Ph.D.
Health care is the most difficult public policy problem there is…
1. How did we get the health care system we have?
… an unintended consequence of Franklin Roosevelt’s attempt to restrain inflation during World War II. His administration forbade wage increases; clever employers offered workers free health care instead. Ever after, health insurance was attached to employment in the U.S…
Our whole health care system was an unintended consequence.2. If we had a Canadian-style system (or British or French), would you give it up for what you have now?
Imagine that you were in a country that guaranteed coverage, where health care costs are 25 percent to 40 percent less, where life expectancy is higher; and where the costs of the system are not imposed directly on businesses.
4. Where did King Hussein of Jordan fly for cancer treatment?
To the United States.
But here is the wrinkle in the King Hussein story. He flew to Minnesota for treatment, not Miami or L.A. Why is that relevant? Because Minnesota is one of the places in the U.S. that spends significantly less on health care than the rest of the country, while getting similar outcomes (taking into account the pre-existing health of the population).
And King Hussein flew to the Mayo Clinic, which practices a form of medicine that doesn’t look like the rest of the American system. Physicians are paid a salary, rather than being compensated based on the quantity of procedures and tests they provide. The incentives are different. The costs are lower. And the outcomes are excellent. Good enough for a king, literally.
5. Should we scrap Medicare?
So if you are ideologically opposed to government-run health care, then I’d like to hear your explanation of how and why America would be better off without Medicare.
6. Can our health care system get worse?
Yes. …a large proportion of Americans think that their health care is just fine.
Good to see that people still know what they are talking about. So much BS around these days!