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Simon Evans
http://www.thebraincode.com
Health Care ? Who Really Cares?
Health care is a hot political topic ? but most of the
attention focuses on how Americans will get their health
care costs covered. While this is important, a much bigger
issue often flies under the radar. The question that most
people don't ask should be ?Is our health care system
really designed to improve your health?'
What's the Business Model in Health Care?
Let's look at a typical business model (Yes, health care is
a business). Companies are in business to make a profit in
exchange for products or services that improve people's
lives. Whether it's a lawn mower company making it easier
for you to care for your yard or an airline company getting
you where you need to go. The basic premise is the same.
They help you in exchange for payment. If they don't
provide a quality product or service they quickly run out
of people to sell to.
There are only three ways that a business can increase it's
profits. 1. Get more customers or clients. 2. Increase how
many times existing customers or clients buy products or
services. 3. Increase the profit margin on each
transaction. That's it. All business growth fits into one
of those 3 areas.
Now let's look at those in the context of the health care
business. Presumably, health care is supposed to improve
your health, which makes you less likely to need health
care in the future. So how do health care businesses grow?
Health care companies cannot really use strategy #1. In
order to get more customers there would have to be more
sick people in need of health care services. That would
mean that companies could not promote prevention because
that would reduce the number of sick people.
They can't really use strategy #2. In order to increase the
number of times sick people need to buy there products or
services they would have to keep from truly getting better.
They can't really use strategy #3 either. In order to
increase their profit margin on existing products or
services they would have to charge the insurance companies
more, who would have to pass those costs onto the consumer,
who are already over-stressed with regard to medical costs.
So how do health care companies grow without using the
strategies of business growth? Surely, they don't
deliberately shun prevention strategies, keep people from
fully recovering, or over-charge for their services?
Who really supports the Health Care Industry?
A couple of recent articles in the New England Journal of
Medicine had some interesting perspectives on the
relationship between the government, health care providers
and pharmaceutical companies.
The first report detailed a survey of over 3,000 doctors
that explored their relationship with drug companies. The
study found that 94% of doctors have some relationship with
drug suppliers. About 4 out of 5 physicians admitted
receiving free food for themselves and their office and
free drug samples to try out on patients. Drug companies
paid for business trips for more than 1 out of 3 doctors
and about 1 out of 4 in the study were actually on drug
company payrolls for consulting, lecturing or enrolling
patients into clinical trials.
Now getting some free coffee and bagels might not be that
big of a deal. Most people would not feel incredibly
loyalty to a company for that favor. Besides, getting some
free samples might actually save the patient money
(assuming they needed the drugs in the first place). But
getting business trips covered and receiving paychecks for
?services'. . . that's a different level of conflict. This
does not automatically translate to unethical behavior.
Some physicians may truly stick to their morals, but how
many will not?
The second study from the New England Journal evaluated the
relationship of the Food and Drug Administration with the
pharmaceutical industry. Back in the early 90's the FDA was
completely supported by congress ? but the agency wasn't
big enough to do their job. So the 1st Bush administration
encouraged relationships with the private sector, which
translated to support from the pharmaceutical industry.
Today more the 50% of the FDA's budget comes from drug
companies. This means that FDA doctors, who evaluate new
drugs, are paid by the very companies that produce the
drugs they are evaluating. Is there a possible conflict of
interest there?
In 1992 the $126 million FDA budget came solely from
congress. In the first year of drug company support
industry kicked in about $8 million or about 6% of the
total budget for that year. By 2004 drug companies were
paying $232 million, greater than 50% of the total budget.
The upside is that some useful drugs, like AIDS and cancer
medications, are able to get through the bureaucracy faster
and get out to the public. The down-side is that so are
drugs like Vioxx, blamed for the death or disability of
hundreds of thousands of people.
Current legislation is under review to change these laws.
But don't assume that the change will be for the better.
Is there a better Way?
The question really becomes, ?How do health care companies
grow and help people improve their lives at the same time?'
The answer is very simple. Focus more on prevention
strategies.
The US government estimates we could save over $71 billion
and prevent 14% of all premature deaths through lifestyle
strategies. Focus on these strategies is a truly
sustainable business model.
Living a prevention lifestyle is a life-long process, and
therefore means repeat customers. It's like taking a
shower. You don't take one shower and expect to be clean
for the rest of your life.
This is where nutrition companies, exercise gyms and health
education companies focus their efforts. They are truly
helping people improve their lives and are growing a
successful business. This is the true ?Health Care'
industry. What most people think of as health care is
really the ?Sickness Industry'. One has healthy people as
customers, the other caters to sick people.
This is a business model that is good for individuals and
good for the economy. But the only way this will take hold
is when people start to vote with their dollars. Vote for
health food instead of junk food, vote for treadmills
instead of big-screen TVs, vote for tennis shoes instead of
gas to drive 1 mile to the store. This is the only way that
we will really secure a future of life-long health for our
kids and our grandkids
----------------------------------------------------
Train your Brain for total Brain Fitness. The Brain Code is
the key to unlock your maximum potential. Dr. Simon Evans
puts together the right ingredients in right amount to
create the recipe for success. Visit us at
http://www.thebraincode.com
