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BUSINESS IS BUSINESS
The large insurance corporations are well on their way toward total
control of American medicine, and it is clear that this is going
to result in a steady deterioration in quality of care for patients
and quality of life for physicians. Why? Are corporations inherently
evil? Of course not. The insurance company executives are merely
doing what all businessmen in any field are trained to do -- make
as much money as possible. That's free enterprise.
But make no mistake about it. "Normal" business practices are
wreaking "evil" and destructive and perhaps irreversible changes
on our superb American healthcare system; and it's going to get nothing but worse, both for doctors and our
patients, until enough of us get exasperated enough and angry enough to
say "No more!"
The stages of growth in any large industry are pretty much the
same. Initially they are:
- Deliver a good product to consumers
- Charge a fair price
- Keep costs down
- Make a small profit
- Reward company executives for "success" (making profits)
As companies gain success, their priorities shift slightly:
- Deliver a good product to consumers
- Reduce costs through efficiency
- Raise prices slightly
- Increase profits
- Reward company executives for "success" (making profits)
- Control a larger share of the market
Then priorities shift more:
- INCREASE PROFITS
- Reward company executives for "success" (making profits)
- Control more of the market
- Raise prices as much as the market will tolerate
- Reduce costs by gaining concessions from suppliers
- Deliver an "acceptable" product to consumers
Finally, as Market Share and Power continue to increase unchecked,
monopolistic practices inexorably begin to emerge:
- Gain power and control in the industry by acquiring or merging with competitors
- INCREASE PROFITS
- Reward company executives for "success" (profits) with enormous
bonuses
- Raise prices as high as the market will bear
- Reduce costs by gaining control of suppliers and squeezing them
brutally
- Keep consumers distracted as product quality deteriorates
The diagram below illustrates the consequences of allowing the
powerful insurance industry to gain control of the American health
care system:
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