Tag: pharmaceutical company

The Next Healthcare Battle

Thursday 7/20/2017 – Most people are at the least relieved with the demise of the latest vicious Republican healthcare proposal cooked by old-all-white-all-male-Republican Senators. Obamacare appears to be safe for the moment. But now is the time to double down on the battle for real healthcare reform in this country.

Millions are still not covered by Obamacare; the performance of the healthcare system is appalling; it is a giant ripoff of over-priced-super-profitable prescriptions and procedures masquerading as health.

Here are the basic facts:

  • Health outcomes: the US ranks
    • 56th in infant mortality out of 225 countries;
    • 48th in maternal mortality out of 184;
    • 42nd in life expectancy at birth out of 224.1
    • all developed countries provide universal healthcare and do much better
  • Healthcare spending: the US spends more than double per capita on healthcare compared to other developed countries.

    (click for full size)

Obamacare Is Not the Solution

Obama and the Democrats never had the political will and strength to tell the pharmaceutical companies, doctors, hospitals and insurance companies that their game was over. We should be outraged that they charge exorbitantly high prices and deliver terrible results. But they live in a marketplace where they set the prices and the incentives in their marketplace urge them on to prescribe more drugs and procedures. The things that are being purchased in their marketplace are not health. We need to demand that we develop a healthcare system focused on health not profits.

The Proof Is In the Pudding

Just look at the chart from the Commonwealth Fund2 comparing performance and spending. Certainly if all of these countries (and others not included in this study) have figured out how to deliver much better healthcare at half the cost we need to demand that our government do at least as well.

 

 

  1. Current CIA The World Factbook – https://www.cia.gov/library/publications/the-world-factbook/ accessed 5/13/2017 []
  2. http://www.commonwealthfund.org/publications/fund-reports/2017/jul/mirror-mirror-international-comparisons-2017 accessed 07192017 []

The Democratic Party and Healthcare – Preserving Obamacare Cannot Be The End Game

While our current attention is on the Republican Party’s transfer of wealth to the rich and corporations through the charade of a healthcare reform, the Democratic Party needs to face up to its future and the future of our healthcare system in particular.

The Global Context

The chart shown here tells you everything you need to know about the outrageous amounts of money we pay versus the astonishingly poor outcomes for our health. Basically we pay twice (200% more) than almost every other developed country in the world for healthcare that is distinctly second rate.1 To put it simply we have a healthcare system that is ripping us off and laughing all the way to the golf course. It is a market system that incentivizes tests, procedures, and prescriptions, not health. It is a market system in which the providers, doctors, hospitals, insurance and pharmaceutical companies set prices as they wish.  Our healthcare system consumes just shy of 20% of our economic output. Our developed country competitors use 8%-10% of their output.

click for large size.

Preserving Obamacare is not enough to bridge these gaps.

Obamacare addresses the lack of access to healthcare in a significant but hardly comprehensive manner. It only hints at changes to the incentives and pricing that drive the unhealthy outcomes. Obamacare is not the solution. Better than nothing, but given the enormous resources being spent and the fundamental failings of the outcomes it is not sufficient.

Health Not Profits

In order to create a world class healthcare system we need to focus it on health not profits. Every other developed country long ago recognized that a market based system would not work because health is not a commodity like corn, cars, or cell phones. It is complex, multi-dimensional, and emotional. It requires a system capable of a holistic approach to people and the society they live in. Each of the countries with universal healthcare approaches implementation very differently in the details, but all have some sort of national/regional health budget that is negotiated with the various constituents. This amounts to a lump sum per person with which the health system operates to deliver health outcomes. The proof that it works is in the chart above. 

Outrage and Political Will – Stop Taking Big Money from the Rich and Corporations

The Democratic Party must absorb the reality of our situation. We need to develop and express some outrage at the current healthcare providers. It will not be a simple task to bring a sector of the economy that consumes nearly a fifth of economic output to understand that we cannot allow this to continue. We need them to evolve to a system that consumes a tenth while vastly improving healthcare for the entire population. A basic truth here is that we as a society cannot and should not allow one sector to consume so many resources, so inequitably, for such poor outcomes. In the global context this is not sustainable and makes us less competitive and less flexible to meet the changes. 

None of this will happen as long as Democrats are taking money from the rich and corporations. If there is a single lesson from the Bernie Sanders campaign it is that with messages and programs that reflect the needs of the vast majority of Americans, you can raise enough money to fight off the Republican Party and its wealthy and corporate sponsors. Time to start now.

  1. The US ranks 56th in infant mortality out of 225 countries; 48th in maternal mortality out of 184; and 42nd in life expectancy at birth out of 224. – source Current CIA The World Factbook – https://www.cia.gov/library/publications/the-world-factbook/ accessed 5/13/2017 []

Just Another Cost of Doing Business? – Pfizer’s $2.3 billion penalty and fine

Is $2.3 billion really a lot of money?

The Obama administration is touting the action taken this week against Pfizer for illegal promotion of several of its drugs. The $2.3 billion sounds like a lot of money to me, and I suspect most people. Is it really a lot of money or just an annoyance to a large company, just another cost of doing business?

Take a look at Pfizer’s Income and Balance Sheets (see their 2008 Financial Reports ) and a very clear picture appears. Pfizer had net incomes of $8.1 billion in 2008 and 2007 and a whopping $19.3 billion in 2006. They also have cash and short term investments (these are your well-known “quick assets” – meaning they are cash or near cash) on their balance sheets of $26 billion at the end of 2008. Now, look again at the $2.3 billion and the number looks quite different. To those who have watched the stream of pharmaceutical company ethical and legal transgressions over the years, this looks like a very manageable cost of doing business.