OVERVIEW
In a speech to the Free Enterprise society at Oklahoma State University, Dr. Sean Flynn explains the history, policies and circumstance of why the U.S. is the mess it is today with its healthcare system. This speech and his ideas are also articulated in his own book, The Cure that Works: How to have the World's Best Healthcare --- At a Quarter of the Price, which like his speech is thought provoking and insightful as to why the U.S. healthcare system functions so poorly and pales in comparison to other countries today, especially Singapore.
HOW DO WE COMPARE?
Dr. Flynn begins with explaining how much the U.S. spends on its healthcare, which at the time [2020] was 18% of its GDP whereas other countries spent only 10-14% with Singapore spending roughly 4% (Flynn). This money spent from the GDP could help with a countless number of other problems the government faces, yet is it spent on the healthcare system. Which is a solvable problem that has a better outcome than what we currently use, according to Dr. Flynn.
Dr. Flynn uses Singapore as the example we should look to for how to provide a better healthcare system. He points out that the mortality rate of mothers during childbirth in the U.S. is 7x higher than the rate in Singapore, along with other statistics supporting his stance. Later on in his speech, Dr. Flynn also focuses on the forced health saving that Singapore enforces to help citizens have access to healthcare once they retire.
From there, Dr. Flynn recants the history behind why the U.S. has evolved into the system it is today. Starting in WW2, to control inflation the government set prices locks on prices and wages. To compete for labor, Kaiser Shipyards began to offer healthcare as apart of employment to entice workers. This savvy move brought about the institution of 3rd party payers and became the bureaucracy it is today.
Today, it is almost a necessity U.S. citizens to have some form of insurance for healthcare. Paying out of pocket is unaffordable for people in need of severe treatment. Dr. Flynn explains that in Singapore people can pick and choose their doctors, find flexible treatments, and see a "menu" of the treatment options available and the corresponding prices. Introducing this system of healthcare opens up the opportunity for hospitals to improve their care and compete for patients.
WHAT ABOUT UNIVERSAL HEALTHCARE?
The problem with offering universal or "free" healthcare comes down to diminishing returns. Offering free healthcare increases demand and drivings up the cost of healthcare for the government. Singapore does pay for health care costs for its citizens but requires them to pick up at least 10% of the costs. Facing the costs, citizens will tend to shop around and decide on what they actually need, whereas with free healthcare one would be tempted to receive the most expensive treatments because they are at no cost to the patient.
Even with the enforced "Metasave" and "Metashield", the Singapore government does have a last resort for people who face catastrophic consequences. The Singapore government placed 5 billion into a trust fund which can not be touched by politicians and the money is used as a grant towards citizens who truly can not afford health care.
MY THOUGHTS
Overall, Dr. Flynn's argument for how our healthcare could improve is very compelling and his last example of what Wholefood's does, points me to believe that this is a viable option for our country. I have always believed that our healthcare system is not efficient and not up to par with how advanced our country is, however, changing healthcare in our country will always be difficult and not politically possible.
Introducing entrepreneurial value into any market pumps in better quality product and lower costs. However, Dr. Flynn brings up the argument of people who are less attracted to becoming doctors because of the hassle of 3rd party payers and insurance system today. However, I think the diminishing number of new doctors is not solely attributed to this cause but rather the rigorous education and training that comes along with the job.
In the speech, Dr. Flynn mentioned the higher maternal mortality rate that the U.S. has compared to Singapore. Quality of care is a major factor here, but it is also important to understand that there is an underlying problem that stems beyond quality of care. In 2020, the maternal mortality rate for non-Hispanic black women was 2.9 times the rate for non-Hispanic white women (Hoyert). Some of this may be attributed to the access to care in these areas, but the access does stem from systemic processes placed long ago and still negatively affect women of color today.
I do still agree with the majority of Dr. Flynn's ideas and think that getting rid of third party payers is a process that would take years of campaigning and then years of litigation and then be majorly altered by political parties. So, our best bet is for businesses to move to models resemble whole foods and figure out more beneficial options for both the employee and employer until third parties can be cut. I think part of the reasons we would face hardship with enacting something like Singapore also comes from kickback with the health insurance workforce and lobbyists.