Thursday, July 9, 2009

OU Professor Comments on the US and Canadian Health Care Systems

In the health care debate, saying the United States is headed towards a “Canadian” style health care system is often used as an insult and a nightmarish scenario for Americans. Should this be the case? We have all heard anecdotal horror stories about people in Canada being forced to wait months for surgery , so is the Canadian health care system really that bad? Or is it worse in the US?

Oakland University Marketing and Management Professor Mukesh Bhargava lived in Canada for several years, and experienced both systems. He feels that the Canadian model is superior to the current US system. “It was refreshing that any treatment you want you can get. If it’s a matter of life and death I know I’d get good coverage,” he says. He believes the system as a whole is better in Canada, and in countries with universal coverage in general. In other countries, the doctors decide what sorts of surgeries are critical, and which are not. The doctor decides whether the government should pay for teeth whitening, or not.

He does not believe that health care should be market based, he feels it should be a right and not determined by who has the money. “What does it say about a country if people can’t get minimal access, what if the same thing was applied to education? Only for those who can afford it. What if you could only take your case to court if you are rich, and if not you couldn’t?”

In Canada, pharmaceutical companies are forced to cut prices by 2/3 of what they are here, and the doctors get paid less, but he assures me “they are not doing that poorly.” A common argument against making drug companies cut costs, is that if they had to cut costs like in Canada, then they won’t be able to afford to do the important research to find new drugs. The professor is quick to point out that “pharma spends more on marketing than on research.” The drug company Pfizer spent 8 billion on research and development last year, as opposed to 14.5 billion on selling, general, and administrative expenses.

“In the US it costs a lot to get your message to the doctors,” he says. He is concerned about the way products are marketed to doctors in the United States, worrying that whichever company gives the best perks to the doctor is going to get their drug prescribed. He compares it to the textbook companies, who all send him free books. “When I choose a textbook I badger them about price, I don’t know how many doctors know the cost of medications they prescribe.”

Professor Bhargava supports the Obama plan, and believes the health care system in the United States needs to change. He recommends this New Yorker article about two Texas towns with a large disparity in health care costs. So that makes at least one person who has experienced both systems, and actually thinks the Canadian system is better.

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