Is Washington really the Land of Oz?
President Obama got a lot of health care “leaders” together to commit to keeping health care costs from rising. His announcement raises several questions:
1. Costs compared to what? Since we don’t know what future costs are, how can we know if this commitment saved any money? 2. What’s gonna reduce the costs? Will doctors and nurses take a pay cut? How then will we attract new health care workers? Will insurance and drug companies forgo their profits? Then how will they attract new investment capital? 3. Is evidence-based health care new? I thought that’s what the science of medicine has always been about.
In the Land of Oz, all Dorothy has to do is click her heels three times and say “there’s no place like home.” Unfortunately, President Obama’s health care proposal makes him look like the man behind the curtain.
Douglas R. Tengdin, CFA
Chief Investment Officer
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