Cut Healthcare Costs

Soooo, Healthcare. It is finally law. And whatever you think about the outcome I keep coming back to the fact that the primary effect of this legislation does not focus on cutting costs. Obama has said that the primary purpose of this legislation is to bend the cost curve. If this was the true focus they could have bent the curve far more effectivly. I never really heard anyone break down what the costs of healthcare actually are. The main costs that are nessassary to deliver any health care are salarys, offices, equipment and administration. You need Dr.s and nurses. You need a hospital or an office. You need bandages and scales. Stethascopes and more. And finally insurance administration which helps reduce fraud in the system and ensures people can afford very expensive procedures. This can be through private insurance companies or through the government. Obama thinks that the problems lie in the administrative side of the equation. The insurance companies are the only part of the process that try to control costs.

Maybe a better way to adress the problem of costs is to look at the actuall delivery of health care. I believe that the single largest problem with the healthcare system today is that the shortage of doctors is driving up salarys. The average hospitalist MD makes 256k per year. Average. Some make more. And they only work one week on one week off. So for 6 months of work they get this type of salary. This is a salaryed job. I understand that the education required is intense but I refuse to believe that this is the natural market price. The real problem is that we dont have enough medical schools to meet the needs of the baby boomer generation. And guess who controls to Medical School accredidation process. Doctors. Through the 17 member Liason Committee on Medical education made up of doctors and medical educators who have a vested interest in keeping supply of doctors low. Since they will make more in the future. Increase the number of medical schools. If the AMA does not want to comply the government has the obligation to ensure that manipulation of the system is not possible. The AMA along with the AAMA are robing the american people. Making huge houses for themselves. Buying boats. Its just way to much money. Their is a market failure which comes out of the fact the federal government allows the AMA to do basically whatever it wants. It is like letting FINRA run the financial industry rather then the SEC. Lets fix this problem which in part is related to the monopoly the AMA holds. I am not advocating breaking up the AMA but it does not more effective oversite. I will try to find more ways to save money in the future but if you dont think more doctors would reduce the cost of health care let me know.