Saturday, March 29, 2014

The effects of socialized medicine instead of price think time

Medical doctors desk with computer I am not one of those proponents saying the Affordable Health Care Act is a wash however I would argue that these liberal policies for health care are not the answer to achieving better access for the poor or anyone for that matter.

Here is what the British are saying about their system. The Guardian Newspaper is saying that their demand for healthcare is outpacing their supply of physicians. The paper is outlining how because of the costs of services the physicians have not received a real net income raise since 2004.  Why haven't these contracts changed much? Because the physicians are overwhelmed with patients.

 In Economic Theory when there are artificial price caps placed on services a shortage will occur.  According to the Fraser Institute a Canadian think tank it goes like this:

Requiring patients to wait for medical services is the primary way that access to a scarce resource, in this case physicians’ services, is rationed in most countries characterized by a publicly funded, universally accessible health insurance system. Conversely, in most markets for goods and services, price is the instrument by which the quantity demanded for the good or service in question is equated to quantity supplied. Thus, if demand exceeds supply at a given price, competition among buyers will lead to a rising price. This, in turn, will encourage an increase in the quantity supplied of the good or service, as well as a decrease in the quantity demanded. Price will keep rising until quantity demanded equals the available quantity supplied. The dynamic will work in the opposite direction if supply exceeds demand at a given price. That is, price will decline until the quantities supplied and demanded are equal. (Globerman 2013)
 
 Looking at an OP-ED piece by the Ottawa Citizen they are facing the same issues. The author states "Additional funding is helpful, but the simple truth is that demand for health-care services is insatiable." (Lafontaine 2014) I went to the article that the Fraser Institute is quoted saying that the cost for healthcare in a free market economy is price, while in a Single payer system the cost is time. The next question for the proponents of government ensuring that everyone receive health care is how long are you willing to wait while you are sick?

I think that the tradeoff is okay for more serious conditions that most cannot afford where you will be waiting anyways. But, when it comes to primary care and outpatient surgeries, I almost think the price point is more efficient or in other words a privatized system.  The article then expounds on what happens as a result of waiting on healthcare and the individual costs from pages 45 -61. One particular scenario stood out when the author talked about people with appendix issues. The conclusion of the author was that the US has better access and quality of care even at the poorest levels than those in affluent circumstances in Canada. (Globerman, 2013)



Wednesday, March 26, 2014

Healthcare Costs and Medical Technology



The article I am reviewing is Health Care Cost and Medical Technology.  By the Hastings Center a nonpartisan research institution dedicated to bioethics and the public interest.  By, Daniel Callahan The printed version Daniel Callahan, “Health Care Costs and Medical Technology,” in From Birth to Death and Bench to Clinic: The Hastings Center Bioethics Briefing Book for Journalists, Policymakers, and Campaigns, ed. Mary Crowley (Garrison, NY: The Hastings Center, 2008), 79-82.

The problem being addressed is the cost of healthcare and medical technology.
  • New or increased use of medical technology contributes 40–50% to annual cost increases, and controlling this technology is the most important factor in reducing them.
  • Universal care is the only tried and effective way to control costs but will involve a large cultural shift because cutting the use of technology will seem wrong—even immoral—to many.(Callahan 2008)
While arguable that healthcare cost could be linked to technology one can disagree that the single solution is government run healthcare. The issue of healthcare cost and healthcare finance are linked together in healthcare delivery and access. I would say this fits under TCO B Given the importance of basic economic concepts such as, supply, demand, production function, utility, efficiency, and marginal analysis, apply these economic concepts to the healthcare environment.
When I think of healthcare technology I think of Capital Budgeting. Capital Budgeting is choosing projects that add value to the firm. This can be purchasing land, trucks, or replacing machinery. Businesses go through a process of evaluating projects which will increase profitability.  (Investopedia 2014)
Within the Capital Budgeting Process there are various finance tools to evaluate a projects cash flow, payback period, and future value. Herein are some of the problems of the healthcare community. Economic theory holds that the value of a firm is equal to the present value of the expected future cash flows the company will generate (Damodaran 2002). Assumptions about the expected future cash flows and the uncertainties of those cash flows, however, often vary among investors. Consequently, the notion of value to whom and under what circumstances becomes important. The ultimate success of a technology is its usefulness (Boer 1999).

If new and increased use of medical technology contributes to 40-50% of annual cost increases, and controlling this technology is the most important factor in reducing them. Why is there not more emphasis placed on how the projects are chosen for implementation?  The author then states that Universal care is the only tried and effective way to control costs? How is a complete shift in the way healthcare delivered more effective than a financial alternative?

According to a PricewaterhouseCoopers Report on Identifying Waste in Healthcare spending, there are approximately $81-$88 Billion Dollars wasted due to inefficient healthcare technology. Claims processing is estimated to be $21- and $210 Billion. This estimate is based upon automating the billing process as well as implementing an electronic health record according to PwC (PwC 2008)

Another perspective is that according to the Centers for Medicaid and Medicare Services there are an estimated 174 million persons in the United States with private health insurance 41.7 million with Medicare and 42.5 million people with Medicaid insurance according to the CMS. The total amount paid in 2012 for CMS was $993.7 Billion while out of pocket and private insurance paid out $1.2 Trillion. (CMS 2012) With an estimate of 88 million persons in the United States totaling $993.7 Billion dollars for services versus 174 million people accounting for $1.2 trillion dollars for services I would be skeptical that the government would do a better job at containing costs.

My personal perspective is that reviewing the TCO B Given the importance of basic economic concepts such as, supply, demand, production function, utility, efficiency, and marginal analysis, apply these economic concepts to the healthcare environment. Looking at specifically the demand production function one can use an analysis to gauge what kind of technology should be employed in a healthcare system based on measurable outcomes. If any other business put into place technology that created an increase in price upwards of 50% without realizing the benefits prior to purchasing I believe they would go out of business. Because the healthcare industry has a different model of payment I believe the industry has been allowed to increase prices and invest in technology that does not produce a demand induced utility. I believe the answer is getting back to basic business functions as the PwC and Commonwealth fund have pointed out where the savings are.

References


Boer, P.F. (1999) The Valuation of Technology: Business and Financial Issues in R&D, Hoboken,
NJ: John Wiley & Sons

Callahan, Daniel (2008) Health Care Costs and Medical Technology, The Hastings Center, Retrieved from:
http://www.thehastingscenter.org/Publications/BriefingBook/Detail.aspx?id=2178

Centers for Medicare and Medicaid Services (2012) National Health Expenditures Table

Damodaran, A. (2002) Investment Valuation: Tools and Techniques for Determining the Value of
any Asset, second edition, Hoboken, NJ: John Wiley & Sons.

Pinkasovitch, Arthur (2011) An Introduction to Capital Budgeting, Investopedia Retreived From

PricewaterhouseCoopers Health Research Institute. (2008). The Price of Excess.
http://pwchealth.com Retrieved from PricewaterhouseCoopers Health Research Website: http://pwchealth.com/cgi-local/hregister.cgi?link=reg/waste.pdf

Free Market Healthcare in the United States and Kenneth Arrow



One of the leading arguments against free market competition as the solutions to the US healthcare issues has come from Economist Kenneth Arrow.  Titled Uncertainty and the Welfare Economics of Medical Care in the American Economic Review in December 1963. (Arrow 1963) The article from Kenneth Arrow outlines how the healthcare market is not a typical market and that healthcare in the United States needs intervention.

1. Unpredictability. Arrow points out that people’s needs for health care are unpredictable, unlike other basic expenses like food and clothing. But while we can skip the occasional meal or sale at Old Navy, our need for health care can be far more urgently necessary.

There are markets with varying amounts of predictability even though a patient may not decide when they will need services they still for a majority or based on payments have the ability to shop around. When you examine that 30% of healthcare expenditures go towards hospitalization according to Centers for Medicaid and Medicare Services.  (CMS 2012) There remains another 70% spent on prescription drugs, medical devices, clinical serves, and other non emergency services.

2.Barriers to entry. Arrow notes that you can’t just set up shop on the side of a road and practice medicine: you must have a license to be a physician and gaining that license requires years of expensive schooling and training. As a result of this constraint on the supply of physicians, there is a constraint on the supply of medical services.

Barriers to entry can be described as the ability to become a physician however; there is a relatively new paradigm in healthcare known as retail clinics. Retail clinics are healthcare providers that are setup inside of local pharmacies such as Target, Walgreens, and CVS. Although they are mostly in urban areas the tendency to think of health care occurring in hospitals or physician clinics is a changing dynamic of healthcare as most of these clinics are staffed by physician assistants or nurse practitioners.  (Deloitte 2009)

3. The importance of trust. Trust is a key component of the doctor-patient relationship; if a surgeon makes a serious mistake during an operation, for example, the patient may die or become permanently disabled. The patient must trust that the surgeon knows what he’s doing, and can’t test-drive the surgery beforehand.


4. Asymmetrical information. Doctors usually know far more about medicine than do their patients. Therefore, the consumer of medical services (the patient) is at a serious disadvantage relative to the seller (the doctor). Patients are therefore vulnerable to exploitation. In addition, third-party payers of medical bills, such as insurers or the government, are that much more removed from the particulars of a given case, and unable to effectively supervise medical practice.

Since Kenneth Arrows research there has been the establishment of the Agency for Healthcare Research and Quality (AHRQ) which was originally created as the Agency for Health Care Policy and Research (AHCPR) on December 19, 1989, under the Omnibus Budget Reconciliation Act of 1989 (103 Stat. 2159), as a Public Health Service Agency in the U.S. Department of Health and Human Services (HHS). The Agency was reauthorized with a name change as the Agency for Healthcare Research and Quality on December 6, 1999, under the Healthcare Research and Quality Act of 1999. The AHRQ's mission is to produce evidence to make health care safer, higher quality, more accessible, equitable, and affordable, and to work with the U.S. Department of Health and Human Services (HHS) and other partners to make sure that the evidence is understood and used. (AHRQ 2014)

5. Idiosyncrasies of payment. Unusually, patients pay for health care after, not before, it is received (that is, if they pay for health care at all). Because patients don’t see the bill until after the non-refundable service has been consumed, and because patients are given little information about price and cost, patients and payers are rarely able to shop around for a medical service based on price and value. Compounding this problem is the fact that patients rarely pay for their care directly. (Roy 2013 )

According to the American Health Insurance Plans (AHIP) they are promoting three key strategies for reducing health care costs. Tackling Barriers to Transparency, Facilitating Benefit Modernization, and Advancing Bold Structural Reforms.  (AHIP 2013)

Accountable Care Organizations ACOs can include hospitals, specialists, post-acute providers and even private companies like Walgreens. (Kaiser 2011) One instance of solutions to cost is retail clinics. Retail Clinics can be used to provide savings if 10% of patients went to retail clinics for outpatient care Out of pocket expenditure per capita according to the OECD is $987.4 further, About 14-27 percent of all emergency department visits could take place at retail clinics and urgent care centers, with a potential cost savings of approximately $4.4 billion annually. (Rand 2013)  The Government endorsed ACOs with a combination of free market retail clinics address the issue of cutting costs and access to primary care. This also addresses the issues of barriers to entry as most retail clinics are staffed by nurse practitioners or physician assistants. 

An indicator of the quality of care could be wait times to receive appropriate care according to an Organization for Economic Co-Operation and Development survey from 2010 the only country to have shorter wait times was Germany the survey was Waiting time of four weeks or more for a specialist appointment. In this survey was just access waiting times of four weeks or more to see a specialist, this does not include treatment. (OECD 2013) The waiting times of four months or more for Elective surgery as collected by the OECD is a measure tracked that Germany and the Netherlands were the two countries that had a lower percentage of wait times.  The only country noted as mostly free market healthcare is the United States.  The other countries have single payer insurance with the exception of Germany and the Netherlands.

Additionally using OECD data for 19 countries to assess the relationship between physician supply and healthcare outcomes, we have determined that there is no association between avoidable mortality and overall physician supply. (NIH 2009) According to the Heritage Foundation article titled Studies Show: Medicaid Patients Have Worse Access and Outcomes than the Privately Insured

A 1992 study in the Journal of the American Medical Association examined hospitalizations in Massachusetts and Maryland. The study found that Medicaid and uninsured patients were statistically more likely than privately insured patients to be hospitalized for avoidable conditions such as pneumonia and diabetes.

    A 2007 study in Health Affairs examined access to specialty services for patients who receive primary care from community health centers.[14] The study found that Medicaid recipients have significantly more difficulty accessing specialty care than privately insured patients.

    A 2012 study in Health Affairs examined physicians’ willingness to accept new patients. Using survey data from a nationally representative sample, the study found that nearly one-third of physicians nationwide will not accept new Medicaid patients. Doctors in smaller practices, as well as doctors in metropolitan areas, are among the least inclined to accept new Medicaid patients.[15] The authors’ results suggest that this reluctance may largely be a consequence of Medicaid’s poor payment rates to doctors. (Dayaratna 2012)

It can be easy to draw the conclusion that healthcare insurance versus not having health insurance results in a lower quality of health while having private health insurance is better than having our Medicaid or Medicare.

There are an estimated 174 million persons in the United States with private health insurance 41.7 million with Medicare and 42.5 million people with Medicaid insurance according to the CMS. The total amount paid in 2012 for CMS was $993.7 Billion while out of pocket and private insurance paid out $1.2 Trillion. (CMS 2012) Based on these numbers the United States Healthcare is on a continuum mostly based upon free-market competition.  Free market economics is a summary term for an array of exchanges that take place in society. Each exchange is undertaken as a voluntary agreement between two people or between groups of people represented by agents. (Rothbard 2013) Encouragement from the Government to form ACO’s in conjunction with retail clinics is making a difference when it comes to access and cost of healthcare.  Even within the insurance system we see elements of free market in the United States delivering a better quality healthcare according to the Heritage Foundation. (Dayaratna 2012)   While a Free Market and entrepreneurship may not be the complete answer to the US healthcare problems it can be an asset to providing solutions to better access and quality in the United States.

References


Agency for Healthcare Research and Quality 2014 About Us Retrieved from:

American Healthcare Insurance Plans 2013, Rising Healthcare costs Retrieved from
http://www.ahip.org/Issues/Rising-Health-Care-Costs.aspx

American Hospital Association 2012, Fast Facts on US Hospitals Retrieved from

Arrow, Kenneth J (1963). Uncertainty and the Welfare Economics of Medical
Care. The American Economic Review. Retreived from: http://www.who.int/bulletin/volumes/82/2/PHCBP.pdf

Brenner, B. K. (2009). Entrepreneurial Approach to Benefits Can Improve Cost
Containment and Outcomes. Journal Of Financial Service Professionals, 63(5), 28-31.

Centers for Medicare and Medicaid Services (2012) National Health Expenditures Table

Dayaratna, Kevin (2012) Studies Show: Medicaid Patients Have Worse Access and

Delloite (2009) Retail Clinics: Update and Implication Retrieved from:
https://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/us_chs_RetailClinics_111209.pdf

Joint Commission (2014) Joint Commission History Retrieved from:
http://www.jointcommission.org/assets/1/6/Joint_Commission_History.pdf

Kaiser Health News (2013). FAQ On ACOs: Accountable Care Organizations,
Explained Retrieved from Website http://www.kaiserhealthnews.org/stories/2011/january/13/aco-accountable-care-organization-faq.aspx

Legal Aspects of Health Care Administration [VitalSouce bookshelf version].Retrieved
from http://devry.vitalsource.com/books/9781449643850/id/ch24lev1sec14

Luce JM, Bindman AB, Lee PR. A brief history of health care quality assessment and
Improvement in the United States. West J Med. 1994;160:263–8

Murray N. Rothbard. "Free Market." The Concise Encyclopedia of Economics. 2008.
Library of Economics and Liberty. Retrieved February 19, 2014 from the World Wide Web: http://www.econlib.org/library/Enc/FreeMarket.html

National Institute of Health (2009). More Doctors or Better Care Retrieved from

Odier, N. (2010). The US health-care system: A proposal for reform. Journal Of Medical
Marketing, 10(4), 279-304.

Organization for Economic Co-Operation and Development 2 (2013). Frequently
Requested Datas Retrieved from: http://stats.oecd.org/Index.aspx?DataSetCode=SHA

National Institute of Health (2009). More Doctors or Better Care Retrieved from

National Institute of Health. (2013). Treatment of High Blood Pressure. Retrieved from
NIH Website http://www.nhlbi.nih.gov/hbp/treat/treat.htm

PricewaterhouseCoopers Health Research Institute. (2008). The Price of Excess.
http://pwchealth.com Retrieved from PricewaterhouseCoopers Health Research Website: http://pwchealth.com/cgi-local/hregister.cgi?link=reg/waste.pdf

Rand Corporation (2010) Many Emergency Department Visits Could Be Managed at
Urgent Care Centers and Retail Clinics Retrieved from Rand Corporation Website http://www.rand.org/pubs/external_publications/EP20100123.html

Reinberg, Steven (January 7, 2013). U.S. Health Care Spending Now at $2.7
Trillion: Report. U.S. News Retrieved from http://health.usnews.com/health-news/news/articles/2013/01/07/us-health-care-spending-now-at-27-trillion-report

Roy, Avik, (2013) Yes, Virginia, There Can Be a Free Market for Health Care Forbes   
Magazine Retrieved from: http://www.forbes.com/sites/aroy/2012/03/18/yes-virginia-there-can-be-a-free-market-for-health-care/

Wall, Barbra. History of Hospitals retrieved from:

World Health Organization (2013). Obesity and Overweight  Retrieved from World
Health Organization Website http://www.who.int/mediacentre/factsheets/fs311/en




The Future of Banking and Finance

Simon Dixon is one of those guys who has captured my attention. He seems to have a certain amount of drive when he explains his progression from University to the financial world. I really admire anyone who has taken the time to set a goal and make it come true.

Before watching this video a few months ago I had no idea about bankers or careers in finance. I come from a background where the professionals that I knew of were doctors, lawyers, and engineers. When I learned what role finance played in the economy I was amazed, I thought to myself I have to know more. I knew there were stock brokers and financial planners but, I didn't understand their roles. Investment banking, Private Equity Banking, I still think that some of their roles are a little vague but, I will definitely find out more. Sure I have read a job description but how do they work? What are some of their daily tasks? What makes a great Investment Banker? How is Crowd Funding changing the scope in how businesses are started? This guy answers a lot of these question in a dynamic fashion.

 I want to connect with some of these people and this blogging platform is definitely a way I'm going to achieve that. Simon Dixon's Website is BanktotheFuture.com

The Myth of Scandinavian Socialism

Some of the Organisation for Economic Co-operation and Development (OECD) interpretations as put forth by the World Health Organization (WHO) seem a little biased via John Stossel. (Stossel is Identified as a libertarian according to Wikipedia) a think that these guys graze over the information in order to put forth some agenda. That big agenda being liberal policies.

I know when you take information and put it into a nice package when people are desperate you pull votes even if it is not in your best interest. I've been reviewing these Scandinavian countries economic numbers lately and I come to some of the same conclusions as this Stefan Molyneux whats funny is you can get the same information from the Heritage Foundation as well as the IMF guys.


Does the U.S. Need to Overhaul our Healthcare to Emulate the Brittish or the Germans?



(Note: After importing the information I was not able to immediately post graphs. I will post at a later date.)
Some of the issues when it comes to United States Healthcare are that the cost is too high. The number given many times when it comes to uninsured in the United States news articles will tell you that the number is about 47 million people. According to the Public Broadcasting Station (PBS) there are 47 million uninsured in the United States. (PBS 2008) This can be quite alarming when you believe that 47 million people are sick or unhealthy because there is no healthcare affordable for them.  To add to the situation the annual cost of healthcare $2.7 Trillion Dollars according to USNews. (USNews 2013) Then you look at the the estimates according to Pricewaterhousecoopers are that over $1.2 Trillion dollars is wasted in the United States Healthcare system.  (PwC 2008) 

Reading the previous information can lead to the idea that there is a lot of money wasted and there are a lot of people without health care.  Another figure is that the US has about 316 million people according the CIA World Factbook. (CIA 2013) With a population of 316 million approximately so per capita the spending in the U.S. is nearly double the next biggest spender country. The U.S. spends about $8500 per capita and yet still has comparable or higher incidents per capita in obesity, high blood pressure, diabetes, and other illnesses and diseases.  Odier, N. (2010). Compare this with the U.S. European neighbors. Instead of having people that are uninsured everyone has a, “right” to free healthcare.  According to some reports, the US (while the biggest spender) has the worst healthcare indicators in developed nations?  Does the United States need to implement what the Germans have in healthcare- a dual payer system? Do we need to implement things from the United Kingdom- where the government pays for everything? Odier, N. (2010).  I want to examine these healthcare systems to see if there is anything worth implementing in the United States to make our healthcare better in terms of access to care, quality of care, or the efficient utilization of resources.

The U.S. Healthcare system is one that does have its issues but is fundamentally different than European Healthcare Systems.

One European model is usually some form of Healthcare called the Beveridge health system implemented after World War 2. Denmark, Finland, Ireland and Sweden have founded their health systems on this model. This is a Social Insurance System based on the Three U’s:
·         Universality : Every citizen is protected against all social risks regardless of employment status.  
·         Unit : A different administrative agency handles each type of risk.
·         Uniformity : Each individual receives services according to his or her needs, regardless of income. 

Then there is the Bismarck health system Austria, Belgium, France, Luxembourg and the Netherlands use a similar form of the Bismarck health system. In the Bismarck. Established around 1883 by Chancellor Otto von Bismarck the German healthcare system was for the workers. Under this system they rely on public health insurance funded by workers and business. This is supplemented by private insurance.  The system is also divided between ambulatory care and hospital care. There is a portion of costs that is covered by private insurance. Odier, N. (2010). 

According to one article, “The US health system is a prime example of a market-based health-care system in need of reform. Compared to systems of major European countries, the US system generally has lower quality care despite higher costs and covers a smaller percentage of the population. Unlike European models, which provide governmentally centralized care, the US system is decentralized and primarily operates on a contract basis between private actors (private insurance companies, health-care institutions and health-care professionals and clients seeking care). Hence, the challenge before the United States remains: How in these conditions can a reform be proposed that would decrease costs, increase quality and expand coverage to include as many people as possible?  Odier, N. (2010).

After reading the highlights abstracts of articles such as the one in the Journal of Medical Marketing one can quickly come to a conclusion that there is something monumentally wrong with the U.S. Healthcare system. But why? What is used to compare the systems?
One entity where a majority of comparative data comes from is the Organization for Economic Co-Operation and Development or OECD. Since 1961 the OECD has published information that records several indicators of its participant’s health key indicators from percent of GDP to mortality, obesity, etc. The Organization for European Economic Cooperation (OEEC) was established in 1948 to run the US financed Marshall Plan for reconstruction of the European continent. Canada and the United States joined the OEEC members in signing the new OECD Convention on December 14, 1961 when the Convention entered into force.  The mission of the OECD is to promote policies that will improve the economic and social well being of the world.  (OECD 2013) 

Cost:

When you examine the Beveridge systems and countries United Kingdom, Denmark, Finland, Ireland and Sweden you will find that the per capita spending for these countries as a component of public expenditures is slightly lower than the United States,  while the Bismarck health systems Austria, Belgium, France, Luxembourg and the Netherlands are closer to what the United State spend. What this shows is that our public spending on healthcare is at least close to what the public spends. 


Another interesting find is the amount of out of pocket expenses as a percent of total expenditure. With the exception of France and Germany the U.S. pays less as a percentage of total spending. 

                             

The argument for some reports is that based on spending the outcomes of heart complications, high blood pressure, and obesity the U.S. system lags behind. Odier, N. (2010).  These are complications that are usually the result of poor choices versus a healthcare issue that can be cured by visiting the Doctor.  When you visit the National Institute of Health Website you will find that treatment for high blood pressure is, “adopting healthy lifestyle habits is an effective first step in preventing and controlling high blood pressure. If changes alone are not effective in keeping your pressure controlled, it may be necessary to add blood pressure medications.” (NIH 2013) 

When you visit the World Health Organization website and look up obesity you find the following:
The fundamental cause of obesity and overweight is an energy imbalance between calories consumed and calories expended. Globally, there has been:
           an increased intake of energy-dense foods that are high in fat; and
           an increase in physical inactivity due to the increasingly sedentary nature of many forms of work, changing modes of transportation, and increasing urbanization. (WHO 2013) 

Quality/Access:
The majority of hospitals in the US are the not for profit hospitals comprising 50.7% of the total. The government run hospital rate is around 18% not accounting for the federal, prison, psychiatric, or long term care facilities.  While the proprietary for profit hospitals make up approximately 17.9% of the hospitals in the US.  (AHA 2013) 

Another indicator of the quality of care could be wait times to receive appropriate care according to an OECD survey in 2010 the only country to have shorter wait times was Germany the survey was Waiting time of four weeks or more for a specialist appointment. In this survey was just access waiting times of four weeks or more to see a specialist this is not for treatment. (OECD 2 2013) The waiting times of four months or more for Elective surgery as collected by the OECD is a measure tracked that Germany and the Netherlands were the two countries that had a lower percentage of wait times.  A quick regression analysis of the 10 countries would show a negative correlation of .19% or an r^2 of .0019. This means that .19% of the variance in the wait times is explained by the variance in amount of physicians.

 Source: OECD Health Data 2013 http://stats.oecd.org/Index.aspx?DataSetCode=SHA

Additionally using OECD data for 19 countries to assess the relationship between physician supply and healthcare outcomes, we have determined that there is no association between avoidable mortality and overall physician supply. (NIH 2009)

What we have seen using the same data from the OECD is a few things.
           Public expenditure on health, /capita, US$ purchasing power parity the U.S. is not spending the most. Nor is the spending more than $1000 per capita different than the following 10 countries in the OECD.
           Typical Comparisons of Obesity and High Blood pressure are not conditions that are a result of lack of Medical Care. While medical care can improve the situation there is not a cure for these lifestyle choices.
           Physician supply does not directly correlate to quicker access.


Accountable Care Organizations ACOs can include hospitals, specialists, post-acute providers and even private companies like Walgreens. (Kaiser 2011) An instance of solutions to cost are retail clinics. Retail Clinics can be used to provide savings if 10% of patients went to retail clinics for outpatient care Out of pocket expenditure per capita according to the OECD is $987.4 further, About 14-27 percent of all emergency department visits could take place at retail clinics and urgent care centers, with a potential cost savings of approximately $4.4 billion annually. (Rand 2013)  

One of the larger opportunities in the U.S. is to save money in prevention with behavior based care such as obesity as well as measuring following instructions from physicians. A German Structured Outpatient Education and Treatment Programs for Patients with Diabetes Mellitus and/or Hypertension report in 2003 results demonstrate the practicability and effectiveness of the implementation of programs as an integral part of disease management in routine primary healthcare for patients with diabetes mellitus or hypertension.  (Gruesser 2003) In Germany laws have been passed the most recent healthcare reform under the motto ‘prevention before treatment, rehabilitation, and long term care’ came into force on 1 April 2007 (Schmidt 2007). Even if this information does not directly relate to cash savings this could have a significant impact on the Obesity epidemic in the United States.                              


The OECD collect data across countries to measure healthcare systems but the inputs are different to the point where more data could be sifted through to make better correlations. Is it possible that one solution will solve the multiple problems facing the United States healthcare? The thing that can be taken away from the comparisons is that each country can benefit from using these benchmarks to compare their histories of performance.  According to the Commonwealth Fund England and the United States are addressing similar challenges, including how to get more value out of health care spending, and both nations are experimenting with techniques to steer clinicians, institutions, and patients toward value-enhancing behaviors. (CWF 2010) Some of the solutions to the problem in the United States healthcare problems are to continue to focus on value enhancing behaviors access, and quality. When looking at the data provided by the OECD and the many citations by multiple publications and journals the U.S. Healthcare system can improve, however, to completely adapt to another countries success models based upon limited segments of highlighted information collected by the OECD misses correlations to make effective policy changes.
  

References

American Hospital Association (2013). Fast Facts on US Hospitals. Retrieved from:

Central Intelligence Agency. (2013). The World Factbook : United States:
People and Society: Population. Retrieved from Website https://www.cia.gov/library/publications/the-world-factbook/geos/us.html

Commonwealth Fund. (2012). Health Care Reforms in the USA and England: Areas for
Useful Learning. Retrieved from Website http://www.commonwealthfund.org/Publications/In-the-Literature/2012/Oct/Health-Care-Reforms-in-the-USA-and-England.aspx

Gruesser, M. (2003). Structured Outpatient Education and Treatment Programs for
Patients with Diabetes Mellitus and/or Hypertension: The German Experience. Disease Management & Health Outcomes, 11(4), 217-223.

Kaiser Health News (2013). FAQ On ACOs: Accountable Care Organizations,
Explained Retrieved from Website http://www.kaiserhealthnews.org/stories/2011/january/13/aco-accountable-care-organization-faq.aspx

National Institute of Health. (2013). Treatment of High Blood Pressure. Retrieved from
NIH Website http://www.nhlbi.nih.gov/hbp/treat/treat.htm

National Institute of Health (2009). More Doctors or Better Care Retrieved from
NIH Website http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2732652/

Odier, N. (2010). The US health-care system: A proposal for reform. Journal Of Medical
Marketing, 10(4), 279-304.

Organization for Economic Co-Operation and Development (2013). History Retrieved
from: http://www.oecd.org/about/history/

Organization for Economic Co-Operation and Development 2 (2013). Frequently
Requested Datas Retrieved from: http://stats.oecd.org/Index.aspx?DataSetCode=SHA

PricewaterhouseCoopers Health Research Institute. (2008). The Price of
Excess. http://pwchealth.com Retrieved from PricewaterhouseCoopers Health Research Website: http://pwchealth.com/cgi-local/hregister.cgi?link=reg/waste.pdf

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