Fri, 10 July 2009
In this episode we explore the differences and similarities of Public V Private healthcare.
JimmyLee, interesting point but I think that your comparisons are being mixed and matched to meet your argument. Let\'s take the steel industry for example, there are two large steel manufacturers in the US (Nucor and Mittal) besides them there are only very small mills, maybe totaling 10-20 small mills. There are hundreds of hospitals. The capital intensive costs of steel mills are spread over a customer base of the entire world, hospitals spread the costs over only there local market. there are a few more bad comparisons, steel companies sell commodities, hospitals are service organizations. Steel companies expense there equipment over decades, hospitals expense over a 4-5 year period. The list of bad comparisons go on and on. Steve
I started to listen to your discussion of health care, until I got to the part where one of you opined that because medical diagnostic equipment was expensive that the government ought to run the health care system. The reality is that medical industry is much less capital intensive than many other industries, such as steel making, paper making, oil production, oil refining and distribution and many, many other industries. Based on your nutty logic, the government should be running all our capital intensive industries as well. Sounds great if you\\\'re a Marxist. It\\\'s already been tried in the the Soviet Union and Communist China. It didn\\\'t work.
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