Tuesday, June 14, 2011

Healthcare and Physics Are Not Simple

Make it simple. Make it short and simple. These are words of advice that I take to heart. A blog or for that matter almost any communication needs to have a purpose and be effective or it is not worth doing. When 
Betty says – Larry take out of the garbage – there is no mistaking what she means.

Those of you who read this blog know that I struggle with short and simple and I know I can improve. But this posting is all about why I sometimes rebel against such advice and think perhaps the extreme form of it illustrates why our country is in such a pickle. Some things aren’t simple and attempts to make them seem easy don’t help.

Let’s start by admitting that not everything is simple. No matter how many times you try, you cannot make physics easy. When I was an undergraduate at Georgia Tech majoring in Industrial Management in the 1960s, I was required to take one course in physics. To be honest, we IM majors were required to take “Cookbook Physics” from a professor who specialized in dumbing-down the real physics into something understandable by 18 year-old party boys.  But even Cookbook Physics was too hard for most of us and we were lucky to have a tutor named EE Bortell. I owe Prof. Bortell much.

It is true that most of us generally understand the meaning of “what goes up must come down” but it is also true that we really do not fully understand the law of gravity. Apparently there is a giant sucking machine somewhere in the center of the earth that helps keep our feet on the ground at least until we drink that last JD of the evening and try to moon walk across a floor with a six inch orange shag carpet. When it comes to designing and building airplanes, my hope is that the engineers at Boeing know a little more than “What goes up must come down.” That is, I hope they studied aeronautics, mechanical engineering, and whatever else it takes to really understand how to get us safely from point A to point B.

These studies take time and involve mastering many concepts, theories, history, Michelangelo’s David, and other considerations. If two Boeing engineers want to argue about the best way to design the newest aircraft, I doubt that most of us who have not studied these subjects for thousands of hours would really understand the arguments. We might listen attentively for words like crash or extra rare steak – but we really don’t have the background to effectively decide which engineer is right and which one is wrong. We would hope that experts would make the decisions and our role would be to buy tickets, fly business class, have our luggage lost, and go to someplace really nice in Italy.

Imagine how the tone of all this might change if we normal human beings were asked to adjudicate or vote on all Boeing technical decisions! Imagine that Boeing didn’t really care about having the best airplanes in the world – they just wanted to get public acceptance or love and approval. To get your vote, Boeing Engineer 1 shows you vivid detailed color pictures of crash victims and explains that his opponent’s system might lead to faster aircraft but with a much higher risk of system failure. Engineer 2 shows you getting off the plane in Italy (did I mention our vacation in Italy?) two hours after leaving New York and shows you eating pasta, making business deals with gondola drivers, and otherwise saying things like guten journo and merciprego.

You laugh but whether it is a debate about Medicare or government budgeting issues, most of us don’t know squat about these things and our elected representatives and friends in the press treat us like idiots. Perhaps they are the idiots but for the sake of this argument it doesn’t really matter.  Medicare or healthcare policy in general offers great examples. To REALLY understand the issues in healthcare you ought to at least understand the roles played by everyone in the value chain – nurses, doctors, hospital administrators, medical device and pharmaceutical companies, insurance companies, and Dr. House. You also need to have some understanding of how technological, legal, economic, and other trends and changes are impacting decisions of these entities. Of course, you also need to understand the motivations and actions of people who demand healthcare and the role government plays in impacting their decisions. That’s a lot to master for the average person who thinks that Australia is a US state and who can barely turn on his TV without the help of a 14 year old grandchild.

Like decisions at Boeing these decisions about healthcare are not simple and are not easy to explain as we normals debate the best systems. So what we get are watered down and dramatic oversimplifications which have very little to do with the real issues and everything to do with scoring votes –
o   Death squads will murder your Uncle Bob
o   Republicans will push Grandma Betty over the cliff
o   Pharmaceutical companies only care about making money and make huge, obscene profits
o   Government is needed to protect people from companies
o   Companies are needed to protect people from government

It really isn’t about any of those points. There is a belief that the US should have a healthcare system that includes everyone. So benefits have been extended to nearly the whole population. Before this legislation was passed, costs were rising at unsustainable rates and creating challenges for the system’s viability. Adding millions more people has the potential to constrain these cost increases but much of the new healthcare program does not seriously and convincingly get the job done. Thus we are left with a plan that could add to the bankruptcy of a nation already on the verge of financial breakdown! No plan that includes both widespread inclusion and cost control is going to make everyone happy. Someone is going to have to lose something. This is not easy stuff. Where is EE Bortell when you need him?

I think you get my drift. Most of us don’t really know anything about designing a healthcare system for 300+ million people but when some of the “experts” tell us colorful and outrageous things we either (1) nod and acknowledge the opinions of the experts we like (from our political party) or (2) we hoot, holler, and ridicule those we don’t like (in the other party).

This is no way to get to the moon and it clearly is no way to design a decent healthcare system or balance our ballooning national budget.

Isn’t it weird how we let politics determine so much of what impacts us? Imagine if we had to get a majority of politicians to help us decide things like: the best way to drive from our house to our favorite restaurant; whether to select Android over Apple; if our children will play soccer or piano; and so on. The point is that many decisions SHOULD NOT be determined by the political implications – they SHOULD BE determined by the specific merits of the arguments.

So if this makes sense for most of the things we do every day – why does it not make sense for other important things like healthcare and budget balancing? Why don’t we just say – Harry, lighten up and do what is best for the country.  Duke it out all you want but eventually get Jim and some real experts into a room and don’t come out until you have compromised on a decent solution. Tell all those fringe folks to take a hike.  I know it takes some real cajunas to stand up to those squeaky wheels but in the end you probably don’t need them anyway.  In our jobs and families most of us have to use logic over passion when making decisions. Why are we so docile about requiring the same of our politicians? 

20 comments:

  1. I agree 100%. There are some (many) things which are far too technical for political solutions made by people with little or no knowledge on the subject who accept input from a whole host of self interest groups. This is not how our forefathers intended this to happen and it is weakening our government and country.

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  2. In my first year of grad school, where I was an Urban Planning/Law dual degree student I was required to take a survey course that included health care planning. One of the first things any planning student learns is a plan consists of goals (say something like a goal of a better health care system), objectives to reach the goals (stuff like increasing coverage for children, better distribution of GP doctors in rural areas, and the like), and criteria to measure the objectives (stuff like 95% of kids covered or 1 general practice doctor for every 2.5k peeps in Utah). Note, use any numbers you want here.

    Almost every one agrees about the big goals, we all want a good health care system. A lot of peeps agree with the objectives, especially ones like taking care of kids and that we need country doctors.

    The problem comes with the criteria. Is 95% coverage for kids enough, or is it too much? How much will it cost to go from 95% to 96%, and what does the cost/benefit analysis show. How does the opportunity cost come out, would the money be better spent on something else. Perhaps the most important question is how much money is there to pay for a better health system.

    To answer your question about why the pols do not go into a room and come out till they have "have compromised on a decent solution", remember pols are elected. The voters who elect Harry or Nancy, or whoever, have a much different idea of what a compromise and decent solution is than the voters who elected the pols on the other side of the aisle. So a pol who compromises risks angering the voters enough that they may not vote for them the next time.

    Without getting too far into the weeds any health care planner will tell you the key question in any health care system is how to ration health care. As with any other good or service there is not enough health care to meet demand; so it must be rationed. It can be rationed by price, which is historically how it was done in the US; or it can be rationed by time, which is how countries with socialized medicine do it. Or it can be rationed by a combination of the two, which is sorta how the US does it now. If you have the bucks/insurance you can purchase health care; if you are broke you go the the emergency room and wait your turn for health care.

    So the real argument is how much health care should be rationed by price and how much rationed by time; with a constraint of how much tax revenue the govt has to devote to health care. All the other arguments are fluff.

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  3. Dear Stu. Tough topic. Spent many hours contemplating a solution that otherwise could have been used to taste good wine, eat stinky cheese, and contemplate my navel. Assuming all that contemplation only added wrinkles to my smooth-surfaced and vastly unpopulated brain, here’s my conclusion\solution. Keep it simple. Many folks like the med coverage they’ve got for the cost thereof. Fine; like OB said, keep it. But, if you want med insurance and can’t afford it, fine; good ol Uncle Sam will send you the premium to buy basic coverage and you send a certificate of coverage, but you’d have to pay for additional premium for catastrophic coverage – if you want it. For those who can afford med coverage but choose not to buy it (I heard about 20% of the so-called “uninsured” 20-30 million make at least $75K per year . . . .), fine; be stupid and suffer the consequences. This solution keeps the Feds out of our lives and the responsibility of med insurance at the individual level. It’d be a lot cheaper just to send premium $$ to those who want coverage but can’t afford it.

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  4. Lets just put this tar baby back in ze coolah. This health care abomination is not about health care at all. It is about producers, plunderers, and moochers. Recognize a major best seller from the '50s, anyone? The entire thing is political...about how much power the government can grab. Back in the days of the Southeast Asia War Games, we had a saying: When you grab them by the gonads, their hearts and minds will follow. When the government grabs you where is matters, your heart and mind tend to follow. It's how they created an "entitlement society." When I was young, health insurance was the least of my worries. I was invincible....sorta like the feeling you get after 4 shots of tequila... so, I didn't think much about it. Then, I hit 30 and realized it now took 6 shots to make me invincible. I got serious about the future. Now that I have aged, gracefully I might add, health care is very important to me, and I don't want some GS-4 sitting behind a desk telling me what level of health care I can have. I planned ahead and made sure I had the coverage I needed, and I paid for it. However, some idiot politician way back in the '60s decided that what I needed was a form of social health care that would cover everybody, and I just had to help everybody pay for it whether everybody paid for it or not, but he made sure that he didn't have to live with the same crap. Now, at my advanced stage of maturity, the health care I paid so much for is forced to a secondary role while this socialized mess takes over and all of a sudden becomes very selective as to what it will cover. And the secondary one now says, "Well hell! They ain't gonna pay! Neither are we! Whaddaya think about that, a**hole?" I lived in Australia for 2 years and had to depend on their socialized medical system very much like the UK's. That's a nightmare I don't want to relive. Let me just say that you get what you pay for in spades.
    Get the government out of it! Don't force people to buy health insurance if they don't need it just make sure they understand that we the taxpayers will not be coming to their rescue. It is an individual responsibility! Health care is NOT a God-given right! The Declaration doesn't say "provide for the general welfare." It says, "promote the general welfare." In other words, create an environment that is conducive to everybody doing the best that they can with the abilities God gave them. Cut the free market loose and let insurance companies compete across state lines. Competition works!Guvmint don't! Rant over.

    BTW, I have flown some airplanes which by their designs made it obvious that engineers don't ever plan to fly/fly on what they design. But I will admit that if it ain't Boeing, I ain't going!

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  5. I thought I was through, but:
    6/14/2011 | APNews
    "The Social Security Administration made $6.5 billion in overpayments to people not entitled to receive them in 2009,
    including $4 billion under a supplemental income program for the very poor, a government investigator said Tuesday."
    Do we really want these people running our health care system????

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  6. Charles, Damn -- I was just in the middle of a reply to you and I hit the wrong key and it disappeared. What i was trying to say is that even the things you suggest have intended and unintended effects. The experts need to work through those. But I think it is doable. We can find a way to give coverage to more people AND control the costs.

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  7. Rage,

    let me focus on your point about rationing and about making the voters happy. Yes, some mix of rationing devices will have to be agreed upon. These will have negative consequences for some people. There have been politicians in the past and there will be some in the future who will be able to persuade folks that real progress comes from policies that benefit the nation despite having negative impacts on some. They or perhaps some cataclysm will convince the median voter that ideological rants will do nothing but make things worse. I rant about common sense moderate programs because I think it is possible for a good leader to support them. Right now we just don't have that leader.

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  8. Dear Crash,

    Unfortunately you live in a world that will never be here again. It is okay to wish for such things -- and I wish for them too. We are not that far apart. But today is today and there are no real modern nations where you would care to live that don't do healthcare -- and despite the press, they do it worse than we do. Sorry but I don't want Canada's system even if it comes with unlimited amounts of Molsen. Perhaps if reasonable people sat down with reasonable people we could have a system that covered a lot of folks and did it without killing us financially. It wouldn't be perfect and it might have over-runs but it might not have the horrible kinds of mis-mangement that you cite.

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  9. Are you saying that I live in Never-Never Land? Oh, that key with "Del" means "Delete." It doesn't give you a direct line to Dell.

    Your posit that "if reasonable people sat down with reasonable people" in Washington DC is basically flawed. Finding reasonable people in DC is like finding a virgin at the local cat house. What we see coming out of DC right now is a push for "social justice" which is a pseudonym for "wealth redistribution." Health care is just one facet of that idea. I suppose that I'd be a bit more comfortable with it if I knew everybody contributed something to it, but too many just sit and wait for Uncle Sugar to dump it in their laps. Realistically...and that's the kind of world we live in, real...it is financially impossible to give everybody everything they think they deserve, e.g., if I'm entitled to a $7/hour minimum wage, why am I not entitled to $20/hour. Why should wealthy lawyers in Congress living off the taxpayers be the ones to tell us what we can have when they're using our money. Where does this social justice crap end? I'll tell you...when all of the producers have disappeared to a hidden, secluded valley somewhere in the Rockies and the plunderers and moochers are screaming that it isn't fair that there's nobody left to take care of them anymore.

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  10. Dear Crash,

    I agree that it is hard to find reasonable folks these days -- but I still think it is true that we are just making things worse when people on the extremes of both parties dominate the discussions. There have been times when moderates got sick of all this and took hold of the conversation. I am not optimistic that it will happen again soon, but it is possible. I too read Ayn Rand and was forever changed by her ideas. They are worth fighting for and preserving. But as I said in my previous comment -- we probably are not going back to a country with a small government. We can try to move it a little to the right and we can try to keep it from moving further to the left -- but we are not going back to 1920.

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  11. Stu, it’s now my turn to suggest you’re in an “ideal” frame of mind. The “experts” to whom you refer are the ones that brought us social engineering that wrecked the housing market, abysmal oversight of financial markets that eventually collapsed, ballooning deficits, a byzantine and regressive tax code and who are staring at Medicare and Social Security like deers in the headlights. I am less sanguine about their ability to do\fix anything.

    Damn, Crash . . . . some rant – go, baby go!

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  12. I don't want to go back to 1920! The 1960's would be fine especially knowing what I now know!

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  13. Crash -- I will meet you at Al's Corral, 1965

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  14. Dear Charles,

    I hope the rants make you guys feel better. But I stick with my view that it is the extremes that did most of the bad stuff Charles listed and are about to make things even worse. They get people all steamed up with unrealistic expectations and then either get nothing done or implement really stupid things that have to be changed later. Look around you and see if you can find one example of a country that exists in the way you describe -- a capitalist haven with minimal social state. Even if you can find one it probably has little relevance for the US today. What is missing in the US is leadership. I keep saying this over and over in the comments -- but it is not impossible to have a leader who will appeal to the center. This center wants the country to work better. The center wants to live in a world with entrepreneurship and strong incentives for productivity and progress. But this center also wants to help those who cannot properly help themselves. This center wants to accomplish the latter with minimal disruptions to the former. No easy task but worth trying.

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  15. Mr. Stu. Twas not the extremes that did most of the bad stuff but rather the gutless middle that voted to allow the bad stuff to be bad. Therein lies the solidarity of the problem – even with the bad extreme folks, the gutless wunders of the middle perpetuate the stuff the bad desire; seeking middle ground led us to the fix we be in. Looking ‘round for a capitalist haven within minimal social state I see US; as Pogo said, “I’ve seen the enemy and it be we . . .” Yes, the center/middle wants the US to work better but it is not ready to vote the “right” way – ‘cause they lust to be re-voted back to the middle. Helping those who cannot is fine as long as those who can can – with minimal tax and reg burdens and incentives to produce – produce sufficiently – and generate income – to help those who cannot; last I heard ‘twas supply-side econ.

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  16. Charles,

    Many on the left were offended by Bush's policies that they identified with hurting middle and low income people. So the pendulum swung when Obama became president.The right was very unhappy with Obama's policies -- especially healthcare -- which they believe were rammed down our throats. So the pendulum is swinging back the other way as the right tries to undo Obama's policies. Back and forth. I agree with you that the middle seems to have quietly gone along with this. As I said before, they need a leader and no one is taking charge. My gripe in these communications is that the latest swing of the pendulum may not be healthy if it just swings again too far. Not making real progress on the debt could have very negative impacts on the country. Making no real improvements to healthcare leaves us with little control over healthcare costs. So here we are. The middle sits and twiddles its fingers while the extremes make outrageous demands of each other with no good outcome.

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  17. Lar,fixing the debt problem will necessarily incur a great of pain, and nobody, especially our elected representatives (and I use the term lightly)wants to even think about that level of agony. The entitlement mentality has created a problem it doesn't really want to fix....a bit like the junkie who hangs out in the alley by Moe's & Joe's asking for a C-note for a cup of coffee. He says he wants off the stuff, but it just "hurts so good!"

    The health care issue could have been/can be solved with the application of some good, old common sense, a commodity sorely lacking in the halls of guvmint. I believe there are folks on both sides of the aisle who have offered workable solutions, but their voices have been drowned out by the strident cries of those who want the federal guvmint in total control of our lives a la Orwell's "1984." The other extreme just wants total hands-off...it's somewhere slightly left of that one.

    In reality, there is no middle/center. It is only an imaginary point which the pendulum swings through on its way to one extreme or the other. Nature abhors a vacuum (as does my wife, it seems), and that would be the middle/center in this analogy. One extreme or the other will always rush in to fill it. Therefore, to sit and claim that we can all come to agree on a middle/center course of action is, of course, foolishness. My view of the middle/center is skewed as is yours. As I said earlier, in reality, there is no such position. The only way to handle these problems is for the strict constitutionalists to take over....problem solved... but that's just my opinion. You folks who'd rather try to sit there in a middle/center position had better watch out because as the pendulum sweeps through, you'll get knocked off the fence and may not like where you land.

    Charles, to be totally accurate, Pogo's line was, "We have met the enemy and he is us," but I do prefer your Ebonic version.

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  18. Crash,

    From your last comment it looks like our main point of difference has to do with the middle versus the strict constitutionalist. It is interesting that your disagreement with me can be turned against you. You say the pendulum swings and will go right past the middle as if it wasn't there. I say that you might get your way and have the pendulum swing right but then it won't stay there -- soon swinging back to the left. If we both really believe what we are saying about pendulums then we are both wrong about the best approach. So maybe we need to rethink the swings. I posit that the size and speed of the swings are proportional to the size of the last swing. Therefore the closer one gets to true constitutionality the faster we will move away to a far left position. So getting your way will give you fleeting happiness and enduring heartburn. The best approach, therefore, is to have little and slow swings around the middle. How do you get there? Find a good leader.

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  19. If you've ever been to the Smithsonian and seen the big pendulum in the Natural History Museum, I think, it swings at a constant frequency very much like the sine waves E.E. Bortel drew on the chalk board to demonstrate whatever he was trying to demonstrate. The length of the swings gets no larger and no smaller. So your point is? Where was I going with this, anyway? And a good leader would be.......Can we get George Washington back for a while?

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  20. Crash,

    My pendulum must come from the theory of catastrophe. George can come back but he needs a new wardrobe.

    Larry

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