Controlling health-care costs: Another American way
The success of Kaiser Permanente, an integrated American health-care firm, offers lessons for insurers and hospitals at home and abroad
ON A recent trip to America, Nicolas Sarkozy, France’s president, could not resist the temptation to needle his hosts. Just before the visit his American counterpart, Barack Obama, had secured Congressional approval of a plan for a dramatic expansion of the country’s health-insurance market. Observing that America is the only wealthy country to lack universal health coverage, Mr Sarkozy sniffed: “Welcome to the club of states who don’t turn their back on the sick and the poor.”
Europeans have long thumbed their noses at America’s bloated health-care system. It is true that parts of it are convoluted, cruel and much too costly. But Sir Richard Feachem, a health expert and the former boss of the Global Fund to Fight AIDS, Tuberculosis and Malaria, argues that such a view ignores “nuggets of good practice”. The best such nugget, he reckons, is Kaiser Permanente (KP), a not-for-profit health insurer and hospital chain which last year took in $2 billion more than the $40 billion it spent. ...
