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Must Read for Liberals Interested in Healthcare Reform: Public Healthcare Expenditure has a Demonstrated Effect on Health.


EVERYONE should review this post and these numbers. The regression results are consistent with the facts that free-market health care results in adverse selection in insurance, moral hazard, and fails to price externalities.

The regression results show a statistically significant negative relationship (as public health care expenditures go up, health improves) between public health care expenditures and infant mortality rates, while showing a statistically insignificant positive relationship between private expenditures and infant mortality (the amount of private expenditures is not correlated with health).


The fact that the number of private health care dollars has no significant effect on health is consistent with theory. Consider the United States, health care services and insurance are provided privately and they are much more expensive as a result (US health care expenditures: Canada health care expenditures = 1.71:1) but we do not receive more services (US healthcare services received: Canada health care services received .71:1). 

For those of you who do not speak econometrics - this means that public health care systems are more efficient and result in healthier nations, while market based systems are inherently inefficient due to market failures and reduce a nation's health.

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This is a critical article that intelligently summarizes some very difficult to understand stats from a more technical article that it links to. In sum and substance the most relevant part of this study focuses on the real social "payback" of Canada's so-called "socialized" medical system vs. what we get from the mess of our privatized, for-profit medical delivery system in the US. Basically the per capita costs in the US are substantially higher than what Canada pays --- but the actual per capita "payback" to citizens in Canada is substantially higher. The drug companies, medical insurers and hospitals in the US will not want an informed electorate in the US to understand this --- because it will cause us to quickly support a single-payer system under the control of the federal government. (But surprisingly enough most, but not all, doctors will support this because it delivers better health care in a fashion that is consistent with their Hippocratic Oath.) And I should add that I have a rough version of Canada's system because I have Medicare with Part D delivered through Kaiser Permanente in California. Kaiser depends on a state-of-the-art computerized records system. The entire delivery system at Kaisers works very well from my observation. And one additional payback of a single payer system in the US would be the immediate elimination of the medical insurance costs from US companies like GM, Ford and Chrysler.

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Thanks. This totally fits with my view of a Public Health umbrella:

http://www.talkingpointsmemo.com/talk/blogs/therap/2008/11/obama-transition-asks-what-con.php

Costs less and people don't fall through the cracks. We'll have a more well-being all the way around as a society.

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TheArse

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