(Un)Healthy Results (Part 2)

What should we do about health care?

Health Care is often described as one eighth of the economy. But without an effective health care system, all workers become unproductive sooner than they need to. And without an efficient system, we devote more resources to keeping workers healthy than we need to. So getting health care right is important.

It’s well known that health spending as a percent of the economy is much higher in the US than elsewhere. Much of this difference is due to the higher wagest that American doctors and nurses earn. We could reduce our health expenditures by slashing their salaries, but that just might affect the quality and availability of our care.

Lost in this discussion are our “exports” of health care. Around 70,000 foreigners per year seek medical treatments in the US. Most them come here because they want better care than they can get at home. This shows that the quality of our care continues to attract discriminating buyers.

These dollars, while small, help our system’s solvency. Any restructuring needs to take this into account.

Douglas R. Tengdin, CFA
Chief Investment Officer
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By | 2014-09-03T19:03:10+00:00 June 2nd, 2008|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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