Tuesday, December 4, 2007

Healthcare Costs - Supply and Demand

I've been talking recently about Tort reform and how it could impact the cost of health care. Helping to make health care more affordable and thus increasing health care so that we can achieve universal health care with out completely giving control of health care to the Gov't, the good people that brought you public restrooms, Medicare, Medicaid and the post office.

One of the ways to manage costs is to increase Supply and reduce Demand.
Lets talk about Supply first and then Address Demand later. Increasing Supply requires us to increase the number of Doctors, Dentists, Nurses etc.. working. We actually have a lot of Doctors but many of them simply don't work or limit the kind of work they do because of the cost of insurance. I believe a key impediment to Doctor is the extreme cost of becoming a doctor and the huge debt one must go accumulate to become a Doctor and of course how difficult the training is for This. I'm not sure I want to address how difficult this is, I think I want it to continue to be difficult to be a doctor from the work load and how much you have to learn. However, I feel that the one area the Gov't can and should get involve is not to pay for Insurance but instead to pay for our Doctors' education. I think anyone who can get accepted to Med School should be able to get a full ride from our Gov't. I believe this would significantly enable and increase the number of doctors entering the workforce. I also believe that if a person got a free education from the Gov't they are required to pay it back by giving 10% to 20% of their time and earnings to Needy people and Free Clinics. Focused mostly on Preventive care. In fact I think most preventive care could be paid given away by those that received a free education. This would actually increase the cost of health care some what. Because then for the doctor to make his money he would have to charge 10% to 20% more for the other work he is doing. However, This is going to be much cheaper than the taxes required for the Gov't to create another bureaucracy to create a health care system that covers all Americans.

By increasing or even making free most or all of our preventative health care work, we would see a significant decrease in the amount of emergency and truly expensive work we are doing now. Such a large portion of our population is waiting to see the doctor at a point where the work is very expensive and less likely to be effective. We actually find that people with Insurance spends less on health care because they get the maintenance and preventive care that so many do not.

By removing the cost barriers of becoming a doctor and getting them to pay it back in preventive care for the poor, we increase Supply and reduce demand.

1 comment:

derekjames said...

These are pretty good. You should keep it up. You should also link to your blog whenever you leave a comment on my site.