Private Health Would Cost $7.2B More

Posted on Wednesday, June 09 at 12:14 by canuck
"It's a great opportunity when real policy is being made and (candidates) have to stand up for what they believe in," said Dr. P. J. Devereaux, a Hamilton cardiologist and lead author of the study.

"Like anyone, you want to create debate. We hope to inform them to change their policies, or if they don't to let the public make the decision."

NDP candidate Gordon Guyatt, who is running in the riding of Ancaster-Dundas-Flamborough-Westdale, is one of 19 researchers taking part in the ongoing study. Devereaux waved off any suggestion of bias despite the NDP being the only mainstream party that has come out against private for-profit hospitals.

He points out the research went through rigorous peer review before being accepted by the prestigious medical journal.

It's also praised as "meticulous" by two Harvard University professors who wrote an editorial accompanying the article.

"We undertook measures to limit bias," said Devereaux. "Gord's running for the NDP, but he's a physician and a scientist first."

Allowing private companies to operate health facilities that would continue to be publicly funded has been a hot-button issue in the campaign. The Conservatives have said they would allow the provinces to decide if health-care services are delivered privately or through the public system.

"We believe what matters is that people can get access to the services, not who delivers them," said Tory leader Stephen Harper when he unveiled his health-care platform.

The Liberals say they prefer public delivery, although the government allows private clinics to provide a range of services.

Also, Health Minister Pierre Pettigrew has also made controversial comments about the private sector taking a greater role in health care, although he later withdrew those statements.

Devereaux hopes hard evidence will convince politicians and voters that allowing private companies to run hospitals is not a good solution to Canada's battle with long waiting lists and rising health-care costs. His research already concluded two years ago that American private for-profit hospitals have higher death rates.

The latest finding that the care is also 19 per cent more expensive -- regardless of whether governments or private insurance companies are paying -- is based on a meta-analysis of eight major studies involving over 350,000 patients treated in for-profit and not-for-profit U.S. hospitals between 1980 and 1995.

The study reports the main reasons for the higher price tag are profit, bigger bonuses to executives and larger administration costs.

"It's not in our best interest as a society to go down this road," he said. "It's a no-brainer. You have worse outcomes and you pay more."

David Christopherson, NDP candidate in Hamilton Centre, says the study confirms what his party has said all along.

"When you do the math at the end of the day the public loses," he said.

"We don't think that's the way to go at all. Money invested in the health care should be in the public domain."

However, his rivals don't agree that the private-sector should be automatically left out of health-care reforms.

"If it's effective and it doesn't infringe on individual access to universal health care, then it's fine," said Conservative Leon O'Connor. "Obviously something has to be done because the system right now isn't working."

Liberal Stan Keyes said the decision would be made after talking to the provinces and only if it complied with the Canada Health Act. The act doesn't bar private companies from delivering health care as long as medicare pays for the service with no extra fees to the patient.

"We want to look at everything," he said. "But we have our code and the code is the Canada Health Act."

[ Here's A different article on the same topic from the Globe and Mail --Ed ]


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  1. Wed Jun 09, 2004 8:20 pm
    Oh come on! An NDP candidate is one of the researchers in this study but says he's not biased and we're supposed to believe him? Just the timing of the study is suspicious enough - this is so obviously a shameless plug for the NDP it defies credibility. The NDP and like minded company aren't the only groups who push this kind of 'research' in such a timely manner - a lot of groups do it - but it's just another form of lobbying that tries to look sophisticated. I wish more real researchers would speak out about social and allegedly scientific 'studies' that seem to conveniently support one side of an issue with such uncanny timeliness.

  2. by avatar canuck
    Wed Jun 09, 2004 8:39 pm
    Knock, knock, knock... Helloooooooo....

    Did you even read the article? It explicitly stated that the study was planned to be released during the campaigns. Oddly enough, which also happens to be a time of intense media activity.

    So I guess a study made by an educated physician and scientist being tested by peer reviews then applauded for its accuracy isn't enough to make it legitimate. I know.... it must be those elitists again trying to fill peoples heads with propaganda suchas talking about the possibility for private corporations being inclined to sacrifice quality of service for profit. As we all know, something like that would never be allowed to happen..... ;)

  3. Wed Jun 09, 2004 8:55 pm
    As asked by the previous comment, I briefly reviewed the paper itself and as a scientist I can say that it appears that the appropriate controls were used in the study to limit bias. While it is unfortunate that one of the authors has an obvious political priority, the fact that this study was published in a peer-reviewed journal should indicate that the article went through a rigourous screening process prior to its being accepted. I realise that most people aren't aware of the rigours of the peer-reviewed process, but maybe you should read the article first before pronouncing that the study is trash simply because of the political leanings of one of its authors.

  4. Wed Jun 09, 2004 9:43 pm
    The part that really convinces me is where the study done two years ago showed the following results:
    **************************
    His research already concluded two years ago that American private for-profit hospitals have higher death rates.
    ***************************

    There is no reason to doubt this study. Those that do have another agenda, and they would be advised to at least believe it when professionals have something to say, something that has other professionals agreeing with it.

    Doesn't it occur to you naysayers that profit puts the price up ? How can you justify thinking that for-profit means the price will stay the same, and quality will not deteriorate ??

    Get real !





    ---
    "Arrogance in Politics is unacceptable"
    Jim Callaghan
    Minden, Ontario
    705-286-1860
    www.misterc.ca

  5. by N Say
    Thu Jun 10, 2004 6:28 am
    I've read other stuff by the lead author, PJ Devereaux, & it's really good. He's also done a lot of stuff on the mortality rates in private for-profit facilities and not-for-profit facilities. Not surprisingly the for-profit facilities have a much higher rate. <P> re: "bias" in the journal, it's not just some magazine, or NDP leaflet or something; it's the Canadian Medical Association Journal, which is highly respected, and this article has also been peer-reviewed. If you actually read it, you'd see that they searched 11 distinct databases containing everything that has been published in medicine for the last few decades, one dated back to 1964 I think. Only a great fool would just dismiss this as some kind of partisan paper of some sort. I guess it doesn't matter how many tens of thousands of facilities, how many tens of millions of patients, how many millions of patient-years worth of data has been analysed if politicians have already committed themselves to a privatisation crusade.<p>---<br>"When I look around me, I can't believe what I see / It seems as if this country has lost its will to live..." - Barenaked Ladies

  6. Thu Jun 10, 2004 5:21 pm
    This estimate of what a private health care system would cost Canada sounds reasonable based on what numerous studies have indicated the U.S. would save under a public system. The non-profit Physicians for a National Health Program have documented some 16 studies looking JUST at the cost/efficiency issue - and of course there are the intangibles, such as universality, access, etc.

    My state of Rhode Island has estimated an annual savings of US$270 million with a public health program; not an insignificant number given our annual budget of only around $3B.

    Check out these reports at:
    http://www.pnhp.org/facts/single_payer_ ... p?page=all

    Canadians have every reason to be suspicious of privatization schemes - not the least because many of your most ardent proponents either come from down here or looking to cash in on something like the lucrative U.S. health care racket.

    -Randy from Rhode Island

  7. Thu Jun 10, 2004 6:37 pm
    Exactly, the insurance companies which are mostly U.S., would make a killing on private healthcare, think of all the people who would have to buy into an insurance program to cover health care, then ooops you have an illness which is not covered, or a treatment which may say your life but it's not covered. We don't need more people involved here, we have enough with govern decided who lives and dies, which also must stop!

    ---
    If I stand for my country today...will my country be here to stand for me tomorrow?

  8. Fri Jun 11, 2004 9:17 am
    Here is some more detail on what privatization is costing us in America, from a press release this past winter from Physicians for a National Health Program (www.pnhp.org):

    "Study Shows National Health Insurance Could Save $286 Billion on Health Care Paperwork:

    Authors Say Medicare Drug Bill Will Increase Bureaucratic Costs, Reward Insurers and the AARP

    A study by researchers at Harvard Medical School and Public Citizen to be published in Wednesday&#8217;s International Journal of Health Services finds that health care bureaucracy last year cost the United States $399.4 billion. The study estimates that national health insurance (NHI) could save at least $286 billion annually on paperwork, enough to cover all of the uninsured and to provide full prescription drug coverage for everyone in the United States.

    The study was based on the most comprehensive analysis to date of health administration spending, including data on the administrative costs of health insurers, employers&#8217; health benefit programs, hospitals, nursing homes, home care agencies, physicians and other practitioners in the United States and Canada. The authors found that bureaucracy accounts for at least 31 percent of total U.S. health spending compared to 16.7 percent in Canada. They also found that administration has grown far faster in the United States than in Canada."

    And additionally...

    "...Insurance overhead (one component of administrative costs) rose by a whopping 16.8% in 2002, after a 12.5% increase in 2001, making it the fastest growing component of health expenditure over the past three years. Hence the figures in the Harvard/Public Citizen Report (which was completed before release of these latest government figures) may understate true administrative costs.

    The authors of the International Journal of Health Services study attributed the high U.S. administrative costs to three factors. First, private insurers have high overhead in both nations but play a much bigger role in the United States. Second, The United States&#8217; fragmented payment system drives up administrative costs for doctors and hospitals, who must deal with hundreds of different insurance plans (for example, at least 755 in Seattle alone), each with different coverage and payment rules, referral networks, etc. In Canada, doctors bill a single insurance plan, using a single simple form, and hospitals receive a lump sum budget, much as a fire department is paid in the United States. Finally, the increasing business orientation of U.S. hospitals and insurers has expanded bureaucracy."

    See what Canada is missing with a public health care system? Just think of the waste you too could be enjoying, not to mention the generous salaries for paper-pushing bureacrats...

    Why on earth would Canada want to jump in to this kind of sinkhole?

  9. Fri Jun 11, 2004 1:18 pm
    Let's try to understand this. The American people are trying to get a Universal Public Health Care system like we have in Canada. But right wing in Canada are trying to bring a private system. Well that counts out any sign of the right wing having any intelligence.

    Kevin

    ---
    "Love actually, is all around us" --From the movie Love Actually.



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