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Health Alert: Applying the Economic Way of Thinking to Health Policy By John Goodman |
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One of the most fascinating books I have ever read in health economics is The Painful Prescription, an analysis of rationing in the British National Health Service (NHS) by Henry Aaron and Bill Schwartz. The Brookings Institution has now published an update, Can We Say No?, and it's every bit as rewarding as the original. Britain spends less than half of what the U.S. spends on health care on a per capita basis. (The British also get less.) For more than a half century, the NHS has promised health care free of charge to all its citizens. Yet upward of a million people are on waiting lists for care. Unable to get what they need from the public system, many pay out of pocket in the private sector, which provides one out of every five surgeries and almost one-third of all hip operations. Although equality of access to care has always been an overriding goal, gaps in mortality rates among British social classes have been widening over the past three decades. Although British politicians for years described the NHS as "the envy of the world," Aaron, Schwartz and coauthor Melissa Cox show that the British are routinely denied services Americans take for granted. For example:
Overall, to achieve a level of care comparable to US standards, Britain would have to increase its level of spending by one-third, according to the authors. The one thing missing from the book was also missing in the original - a "public choice" explanation of how rationing choices in Britain flow logically from the politics of medicine. I tried to fill that gap in a book I wrote almost 30 years ago. For the most recent version, see Lives at Risk, the book I wrote with Gerry Musgrave and Devon Herrick. John C. Goodman is president of the National Center for Policy Analysis. His e-mail is john.goodman@ncpa.org.
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