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Community For Better Health Care
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International News
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Current
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The Private Cost of Public Queues
by Nadeem
Esmail
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This
past October, The Fraser Institute released its seventeenth annual
measurement of waiting times for medically necessary treatments in
Canada (Esmail and Walker with Bank, 2007). This most recent
measurement shows that the national median waiting time from
appointment with a specialist to treatment rose slightly from 9.0 weeks
in 2006 to 9.1 weeks in 2007. Put simply, the impact of waiting times
from specialist to treatment on Canadians in 2007 was similar to that
in 2006.
But the
measurement of waiting times, or the examination of the absolute delay
Canadians must endure in order to receive medically necessary care, is
only one way of looking at the burden of waiting for health care. We
can also calculate the privately borne cost of waiting: the value of
time that is lost while waiting for treatment. While the absolute delay
Canadians endured in 2007 was similar to that in 2006, it is entirely
possible that the value Canadians place on time has changed over the
past year in such a way that a marked change in the impact of wait
times for treatment has taken place.
The
privately borne cost of waiting for care
One way
of estimating the privately borne cost of care in Canada was originally
developed by Steven Globerman and Lorna Hoye (1990).They calculated the
cost of waiting by estimating the amount of time that could not be used
productively by a patient while he was waiting for treatment.
Globerman
and Hoye's methodology is relatively simple. First, the number of
patients who are waiting for treatment is multiplied by the wait times
for those treatments in order to derive an estimate of the total number
of weeks all patients will spend waiting for care.
This value is then multiplied by a measure of the proportion of
time spent waiting for treatment that is rendered unproductive by the
physical and emotional impact of an untreated medical condition. The
monetary value of this lost productive time is then estimated.
In 2007, an estimated 827,429 Canadians were waiting for care
after an appointment with a specialist (table 1).
These
Canadians waited, on average, 9.1 weeks for treatment though those wait
times varied
significantly when broken down by province and medical specialty
(table 2). Multiplying the number of Canadians waiting in each of the
12 medical specialties in each of the 10 provinces by the weighted
median wait time for that medical specialty in that province gives a
rough estimate of the total amount of time that Canadians waited for
treatment in 2007: about 9.99 million weeks this year. This estimate is
slightly greater than the estimate of 9.86 million weeks for 2006 (Esmail,
2006).
Globerman
and Hoye's original estimate for the cost of waiting, which came from
responses to a survey of physicians, used specialty-specific measures
of the proportion of patients who were "experiencing significant
difficulty in carrying on their work or daily duties as a result of
their medical condition." The proportions they estimated ranged
from 14% of patients in gynaecology to 88% in cardiovascular surgery,
and averaged 41% overall (Globerman and Hoye, 1990; Esmail and Walker
with Bank, 2007). However, the estimates of lost productivity measured
by Globerman and Hoye cannot necessarily be applied today because of
advances in the medical system's ability to deal with pain and
discomfort through pharmaceuticals. These advances may allow many
Canadians who are suffering significant difficulties to function at a
higher level today than they would have in 1990, or even to maintain
their normal activity levels. For this reason, this author's estimation
of the cost of waiting in 2007 uses a Statistics Canada finding that
11.0% of people were adversely affected by their wait for non-emergency
surgery in 2005 (Statistics Canada, 2006). This percentage is below
even the lowest specialty specific measure estimated by Globerman and
Hoye (1990).
An
assumption that 11.0% of people waiting for treatment in 2007
experienced significant difficulties in their daily lives as a result
of their medical condition, and thus lost productivity while waiting
for treatment, results in an estimate that nearly 1.1 million weeks
were "lost" while patients waited for treatment. However,
because this estimate is based on the assumption that all individuals
face the same wait time for treatment in each specialty/province
combination, it is mathematically equivalent to assuming that 11.0% of
the productivity of all Canadians waiting for care was lost to a
combination of mental anguish and the pain and suffering that accompany
any wait for treatment. Multiplying this lost time by an estimate of
the average weekly wage of Canadians in 2007 (given in table 3), which
provides an estimate of the value of lost time to each individual,6
gives an estimate of the cost of the productive time that was lost due
to individuals waiting for medically necessary treatment in 2007 (table
4).
The
estimated cost of waiting for care in Canada for patients who were in
the queue in 2007, according to calculations based on the methodology
produced by Globerman and Hoye (1990), was slightly more than $793
million. That cost works out to an average of about $959 for each of
the estimated 827,429 Canadians waiting for treatment in 2007.
Alternatively, that cost works out to roughly $8,716 for each
individual among the 11.0% percent of patients in the queue who were
suffering considerable hardships while waiting for care.
Of
course, this figure is a conservative estimate of the private cost of
waiting for care in Canada. This estimate assumes that only those hours
during the average work week should be counted as lost. It places no
intrinsic value on the time individuals spend waiting in a reduced
capacity outside of the working week. Valuing all hours of the week,
including evenings and weekends but excluding eight hours of sleep per
night, at the average hourly wage (given in table 3) would increase the
estimated cost of waiting to more than $2.42 billion, or about $2,919
per person. . .
To read
the entire report, go to www.fraserinstitute.org/commerce.web/product_files/Dec07FFFull.pdf.
Canadian
Medicare does not give timely access to healthcare, it only gives
access to a waiting list.
--Canadian Supreme
Court Decision 2005 SCC 35, [2005] 1 S.C.R. 791
http://scc.lexum.umontreal.ca/en/2005/2005scc35/2005scc35.html
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Previous
Issue: (current
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Health Care and Social Security in the Bosporus
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A Tale of Three Cities:
Istanbul, Athens and San Mateo, San Mateo County Medical Association Bulletin, September 2007, By James R.
Missett, M.D., SMCMA President
From Gocek, a small seaport town of about
2,000 in southwestern Turkey on Republic Day, Monday, October 29, 2007:
the 84th anniversary of the 1923 Proclamation of the Turkish
Republic.
Istanbul is a city of
17 million that straddles both of the eastern and western shores of the
Bosporus (or "cow crossing") that flows south from the Black
Sea to empty eventually into the Aegean Sea. Almost one in four of the 76
million citizens of Turkey live within greater Istanbul. All Turks are
covered by one of three general health insurance plans for which
everyone (theoretically) pays out of his or her income. Tax collection
remains a national problem to which the current government is
energetically addressing itself, but with mixed results.
In fact, it is the
government's level of confidence in its health care contribution
collections that determines the level of benefit that an individual in
a given class of employees will receive. In other words, the more
certain the government is that the individual class has paid its
complete premiums, the higher and the broader the range of benefits are
for recipients.
The best and widest
range of services is made available to government employees. These
include the employees and instructors in public schools, colleges, and
universities. Some might
look askance at government workers getting the best deal and the
broadest coverage with respect to their health insurance, but
government workers are also a class of employees whose income is best
and most accurately known to the tax collectors.
Better health care
coverage means that a Turkish government employee is permitted to
receive covered medical care in any private or public university
medical facility without any co-payment. . .
Turkey is currently
applying for membership in the European Economic Union (EU). The
widespread belief is that the real reason for the postponement of their
acceptance into full membership by the EU is based on the fact that
Turkey is not a Christian country. In contrast, Greece is a member of
the European Economic Union.
Like the Turks, the
average Greek worker contributes approximately 40 percent of his or her
total income to a combination of health care insurance and social
security insurance. Approximately 15 percent of an individual's total
income goes for health care coverage, while approximately 25 percent of
an individual's total income goes for social security cuts.
However, unlike Turkey,
Greece does not allocate benefits based on a government versus
non-government basis. Nor does Greece give any of its 11 million
population access to the better public university health care
physicians, clinics, and hospitals.
Greece, however, does
continue to struggle with EU demands for retirement eligibility age to
be raised from its current levels of 30 years of work for a man and 25
years of work for a woman, to approximately 40 or 45 years of work for
a man and 35 to 40 years of work for a woman. The current retirement schedule
allows for retirement as early as age 45 for some people.
The EU wants to
increase the age of eligibility for retirement benefits to at least 55,
but the Greeks are resisting. Of the 11 million Greeks, half live in
Athens. This means it is
largely the Athenians that are resisting the demands of the EU for
raising the retirement age.
This is taking place at
the same time that the Turks are beating plaintively and fruitlessly on
the doors of the EU to subject their citizens to the same restrictions
that the Greeks do not want. . .
To read San Mateo and the rest of
the article, go to www.smcma.org/Bulletin/BulletinIssues/Oct07issue/BULLETIN-0710-President.pdf.
Can
You Believe People Are Paying Medicare And Social Security Taxes Of 40
Percent?
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Past Issue: (current issue)
(previous issue)
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What is Single-Payer Government Medicine really like?
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Lessons from Sweden's
Universal Health System: Tales from the Health-care Crypt
by Sven R. Larson, Ph.D., JAPS, volume 13, No 1, 2008.
You cannot buy a new
Lexus for $20,000. Small budgets cannot buy first-class medical care
either. Yet one of the most persistent arguments for single-payer
health insurance is that it will somehow give everyone gold-plated care
at little or no cost.
There are a lot of dry
statistics to prove just how wrong this notion is. But there is a side
of this issue that rarely is told, especially not by advocates of a
government medical monopoly. It is the story of those who pay the price
for the serious rationing in a single-payer system.
Universal Rationing:
Real-Life Examples
Rationing of care is a
reality under universal health insurance. Yet, its advocates seem
universally oblivious to it. In an effort to unmask the reality of
"universal coverage," here are some actual case histories of real
people with real experiences. They were reported by Swedish news media,
in some instances numerous times. Sweden has longer experience with
socialized medicine than almost any other country in the world.
In October 2003 Mrs.
A., who lives in Malmo, Sweden, gave birth to a baby boy. She was
signed out from the hospital after delivering the baby. There are not
enough beds, so delivering a baby "without complications" is an
outpatient procedure. Budget cuts have eliminated beds and medical
staff. The next day Mr.
and Mrs. A. noticed that their baby was weak and did not want to eat.
As is common in Sweden, they did not call a doctor. Instead they called
the tax-paid "TeleMedicine" service. Nobody advised them to go see a doctor right away. The following
day their baby died of pneumonia.
In May 2006 another
couple lost their three-year-old son to the budget-starved medical
system. When Mr. and Mrs. B.'s son suffered from diarrhea and had been
vomiting for almost two days, they took him to the emergency room at
the nearby university hospital. A doctor ordered a supply of
intravenous fluids, and the boy was sent on to the pediatric clinic to
have them administered. When he arrived, the nurses had no time for
him. Mr. and Mrs. B. repeatedly called on the medical staff to ask why
nobody was coming to give their son the intravenous fluids he so
desperately needed. Every
time they got the same answer: nobody has time. They have too many
patients and too little staff. Six
hours later the three-year-old boy died of heart failure. You do not have to be a child
to die from denial of care in Sweden.
In April 2005 Mr. C.,
61 years old, became concerned about an unusual feeling of fatigue. He
went to see a doctor at the local government-run clinic. The doctor
sent him home with some encouraging words. Mr. C. came back a while
later with worsened symptoms. Again he was sent home after a
superficial examination and with more reassurance. Over the next year
and a half Mr. C. visited this tax-paid local clinic a total of 14
times. He had no choice - all Swedes have to go through a
government-run primary care physician at a tax-paid clinic in order to
see a specialist. He developed blood in his urine. But the doctors
refused even to take a blood test.
They told Mr. C. and his son that they were denying him the
blood test because of budget restrictions imposed by government
bureaucrats. When, finally, Mr. C.'s son convinced the doctors to do
one blood test, they found out that Mr. C. had cancer. He was referred
to a regional hospital. There they established that his cancer,
originally curable, had spread throughout his body. There was nothing
left to do. He died shortly after.
Even those who do not
die from encountering denials of care suffer considerably under
Sweden's universal coverage. Mr. D., a multiple sclerosis patient,
lives in Gothenburg, a city of 500,000.
His doctor told him about a new medicine that is considered a
breakthrough in MS treatment. But, when the doctor put in a request to
have Mr. D. treated with it, the request was denied. Reason: it would
cost 33 percent more than the old medicine, and that was more than the
government was willing to pay. For
most Swedes there are no longer any subsidies for prescription drugs.
People with exceptionally high pharmaceutical costs get some subsidies,
but they have to pay the greater share themselves. When the government denied Mr.
D. the new medicine on the grounds that the subsidies would cost too
much, he offered to pay the full cost of the medicine himself. He was
denied the option to pay full cost out of his own pocket because, the
bureaucrats said, it would set a bad precedent and lead to unequal
access to medicine. In
Sweden, there is no way to obtain access to medication outside the
government-run system.
There are other absurd
examples. How many times have you gone to see your doctor only to find
security guards posted in the waiting room?
This is reality in
Malmo, Sweden's third largest city. To see a physician the 280,000
residents of Malmo have to go to one of two local clinics before they
can see a specialist. Except during business hours, only one of the two
clinics is open to serve all the city's residents. As a result the clinic is
severely overcrowded. The security guards serve two functions. They
keep patients from becoming unruly as they sit and wait for hours to
see a doctor, and they keep new patients from entering the center when
the waiting room is considered full.
Opening the second
clinic during off-business hours is considered too costly.
Government control over
medicine also leads to government arrogance. In Gothenburg, a hospital
was blessed with having a talented orthopedist on its staff. Dr. Leif
Sward worked part time for the government-run hospital, part time for a
local soccer club at its private orthopedic clinic, and part time for
the British national soccer team.
You would expect a man
with such credentials and experience to be considered a prized asset in
a tax-supported hospital. But the government bureaucrats were unhappy
with the fact that Dr. Sward was not working full time for them. They
considered his work for the private health clinic "competing
employment" - the soccer players should come to the tax-supported
hospitals instead so as to increase their revenues. So they gave Dr.
Sward an ultimatum: quit the private sector or leave us.
Dr. Sward chose the
latter.
By giving Dr. Sward
this ultimatum, the medical bureaucrats showed that their priority was
to control and stifle competition and choice, an action contrary to the
interests of patients. . .
Conclusion
If we implement a
universal, single-payer model in America today, the negative effects
will reliably occur about a generation from now. The question that we
need to ask ourselves as we enter the election season is this: Are we
willing to send that bill down the road for our children to pay?
To read more about
Sweden's Health Care and the taxes required to pay for it, go to www.jpands.org/vol13no1/larson.pdf.
Sven R. Larson, Ph.D., is founder and
president of The Hill City
Skunkworks, a public policy research firm in Saratoga Springs, N.Y.
www.hillcityskunkworks.com/
Contact: valfardresearch@yahoo.com.
Single-payer
medicine does not give Access to Healthcare, it gives access to a
Denial of Service.
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