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One of the biggest factors for exploding health care spending after paying for research and development of new medicines and technology are the costs of the workers themselves.
http://www.theatlantic.com/business/archive/2010/12/the-health-care-employment-bubble/67920/#
http://thehealthcareblog.com/blog/2009/05/12/beware-the-bursting-of-the-health-care-bubble/
So what happens if/when this bubble explodes? Physicians will weather the storm certainly better than other people in the industry such as nurses, pharmacists, etc., but pay cuts are inevitable. The costs are simply unsustainable. What happens to people after the bubble bursts that still have huge amounts of outstanding loans?
http://www.theatlantic.com/business/archive/2010/12/the-health-care-employment-bubble/67920/#
http://thehealthcareblog.com/blog/2009/05/12/beware-the-bursting-of-the-health-care-bubble/
Some loud and whispered voices in medicine will say…. "we are not like those finance guys. We deserve our money; after all, we do good". American medical advances unquestionably do save lives. But I argue that medicine is still a learned profession, indeed still a service profession, and should perform as such. Asking the government to throw a lot more money medicine's way in order to cover the uninsured is thinking like those in the failed financial sector. Comparative international experience shows that there is enough money already in our system to care for the basic medical needs of all of our people, if we spent it right. Government has a responsibility NOT to make the health care bubble even bigger. I believe that our long overdue Health System Reform must care for the basic healthcare needs of all of our people as a moral imperative derived from our national culture of common compassion. And, now is the time for those of us in the American medical profession to do our patriotic duty to rein in our many egregious and habit-addicted members and lead the rest of the bloated medical-industrial complex to cut back on its vast waste. We can help to get the US back on track economically to benefit us and our children's children. But let's beware of the inevitable collateral damage that will result from the bursting of this bubble, and re-valuation of the healthcare industry at 60% current expenditures, and let's prepare for it. Or, will we learn that the American Disease-Medical-Industrial Complex has really been largely a sophisticated "jobs program" all along, and cannot change now since the already high US unemployment rate would rapidly reach double digits?
George D. Lundberg MD, is former Editor in Chief of Medscape, eMedicine, and the Journal of the American Medical Association. Currently Distinguished Consultant, Physicians Advocates, Berkeley, CA and Consulting Professor, Stanford University School of Medicine.
So what happens if/when this bubble explodes? Physicians will weather the storm certainly better than other people in the industry such as nurses, pharmacists, etc., but pay cuts are inevitable. The costs are simply unsustainable. What happens to people after the bubble bursts that still have huge amounts of outstanding loans?