-Caveat Lector-

 "Exporting  U$ health care- OR  ELSE !"


Dave Hartley
http://www.Asheville-Computer.com
http://www.ioa.com/~davehart

Oct 2, 1999

Marketizing HMOs to Latin America

By Dorothy Guellec

The number of for-profit health care organizations has quadrupled in the
past 17 years, a study by the Henry J. Kaiser Family Foundation said.
For-profit HMO's were 18% of all plans in 1981 but increased to 74% by
1998. The proportion of enrollees in for profit HMO's grew from 12% to 63%
during that period.


The major research study into this phenomenon appeared in the New England
Journal of Medicine on April 8th, 1999 and was virtually ignored by the
media. There were a few articles here and there. Such familiar names as
Aetna, Cigna and others have entered Argentina, Brazil, Chile, and Ecuador
(the 4 countries studied in depth by the research team) and opened newly
privatized markets. The group is based at the University of New Mexico and
reports that many of the managed care organizations operating procedures
most frequently criticized and under review in the U. S. are quietly being
exported.

Principal investigators for this New England Journal of Medicine study
are: Howard Waitzkin M.D. Ph.D. Professor and Director of the Division of
Community Medicine in the University of New Mexico School of Medicine
Department of Family and Community Medicine and Celia Iriat Professor of
Collective Health at the University of Buenos Aires and visiting faculty
member at UNM. Karen Stocker, a graduate student in Anthropology shares
authorship. The group focused mainly on these 4 countries in addition to
the United States.

Since 1993, according to Dr. Waitzkin, institutions such as the World Bank
and the International Monetary Fund have made privatization of state owned
hospitals and clinics a lending requirement when Third World countries are
seeking loans. Often times those former state run hospitals and clinics
are purchased by US and European insurance companies, who then introduce
US style models of managed care.

The history of health care in many Latin American countries is vastly
different from the systems in the United States. Despite economic
underdevelopment, in Latin America there is an aim to assure universal
access to health care. However during the 1990's the World Bank and other
international lending agencies instituted "structural adjustment"
requirements that public health care institutions and government social
security funds be converted to private management and/or ownership as
conditions for new loans. These privatization programs have created
multi-billion dollar capital pools that multinationals have sought to
capture.

All this creates barriers to health care for the elderly, the unemployed,
and the working poor. Governments in Latin America traditionally have
accepted the social responsibility of providing basic care for their
people, but as managed care has moved in the priorities have shifted and
spending is now reduced for these vulnerable groups of patients. Spending
for clinical services is down too due to administrative needs and mainly
the return for investors.

Countries that fail to implement "structural adjustment," read managed
care/shareholder bottom line policies, are threatened with the cutoff or
"drastic reduction of loans, credit to buy essential imports, and food
aid."

As the expansion of managed care slows in the U.S. managed care
organizations are likely to continue to enter new markets abroad. Here is
a comment from someone in Thailand: "I am working in a big government
hospital in Thailand. As you know, my country is developing in all aspects
and try to copy some managing system from yours. My hospital is for
serving the under privileged people, that is over 90% of patients cannot
pay even a baht (1/37 US $) and sometimes the hospital must pay for return
home bus-fare. When IMF came in 2 years ago it said this system cost a lot
of money and cause lots of missed management. So it suggests change by
turning the hospital to autonomous hospital and use something like HMO
system to manage the ill people. I wonder it will be disaster to Thai
people". I want to protect the writer's identity.

Dr. Waitzkin has said that "it is a common perception that health care is
better in the United States, yet in many instances it hasn't been. People
migrate to the U.S. for a number of economic reasons, but finding better
health care is seldom one of them."

**

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