Health Reform by Cloward and Piven Seeks Fall of Capitalism

By Richard Amerling, MD,

Richard A. Cloward and Frances Fox Piven were Columbia University sociologists who founded, in 1966, the National Welfare Reform Organization, a “parent organization” of the Association of Community Organizations for Reform Now (ACORN).

They advocated what became known as the “Cloward-Piven strategy,”  which “seeks to hasten the fall of capitalism by overloading the government bureaucracy with a flood of impossible demands, thus pushing society into crisis and economic collapse.”  This is an instructive prism through which to view the recent health care legislation.

The legislation pushes millions into Medicaid, whose costs are already crushing state and local taxpayers into powder.  Flooding it with new beneficiaries will hasten its bankruptcy.

Likewise, Medicare is to be cut by $500 billion at a time when the baby boomers will be enrolling.  The program is already running at a deficit, and will simply be unable to provide seniors the same level of service they currently enjoy.

In other words, both systems will implode. At the same time, incentives for employers to provide health care will be lessened, and many will drop coverage, sending millions to the government cooperatives for coverage.

These policies will be heavily subsidized by the taxpayer, and will dramatically swell an already very bloated public sector.  We are already mired in debt, and still bailing out Fannie and Fred with tens of billions of dollars each quarter, and with no end in sight. The health bill may be the coup de grace for our struggling economy.

Doctors are not blind, nor are they asleep.  Many understand that “unsustainable” means collapse is inevitable unless Washington does an about-face.  How is the medical profession responding?

Two articles published this week provide a glimpse into the future.  Scott Gottlieb writes in the Wall St. Journal, “In 2005, doctors owned more than two-thirds of all medical practices. By next year, more than 60% of physicians will be salaried employees.

About a third of those will be working for hospitals..”   On the other side, the Houston Chronicle reports that Texas physicians are not only declining to take new Medicare patients, but that “new data shows 100 to 200 a year are now ending all involvement with the program.

Before 2007, the number of doctors opting out averaged less than a handful a year.”  The article quotes Dr. Susan Bailey, president of the Texas Medical Association: “This new data shows the Medicare system is beginning to implode.

If Congress doesn’t fix Medicare soon, there’ll be more and more doctors dropping out and Congress’ promise to provide medical care to seniors will be broken.”  In other words, the “Cloward-Piven strategy” is being implemented.

How to reconcile these reports?  We are moving towards a dual system in medicine. There will be hospital-based physicians who will be mostly salaried, full-time or part-time employees.

Their primary loyalty will be to their employer. They will follow protocols and guidelines, and work shifts.  They will be assigned patients, rather than develop their own practices.  They will eventually come under the heavy hand of the SEIU.

As hospital revenues suffer under ObamaCare, they will find themselves increasingly burdened. Quality of care will deteriorate.

Outside the hospital setting will be a thriving, private, medical marketplace, anchored by a growing number of private physicians who are opting out of Medicare and other third party arrangements.

These doctors will develop busy practices, and will be able to stay in business by setting their own rates, cutting overhead, and controlling their volume. They will be able to spend enough time with patients to ensure a high quality experience, and will work to keep patients healthy and out of the hospital.

Unmoored from price controls, the cost of good care will plummet.  Doctors, labs, and imaging facilities will compete on quality and price.   There is no reason why an MRI shouldn’t cost $100 in a competitive marketplace.

Patients must understand the reality of what is about to happen.  As of this writing, Health Savings Accounts are still available.  Get them while you can!  Creating and funding an HSA is the best way to insure against the coming implosion of government-run health care.

Even seniors on Medicare should set up these accounts.  They should also consider opting out of Part B, which pays for doctors’ services, since they will have difficulty finding private physicians who will accept Medicare.  They will still have Part A in case they need hospitalization.

Like the doomed Korean ship the Cheonan, our health care system has been torpedoed.  It hasn’t sunk yet, but it will.  Man the lifeboats!—————–


Dr. Richard AmerlingDr. Richard Amerling, MD, is a nephrologist practicing in New York City. He is the Associate Clinical Professor of Medicine for the Icahn School of Medicine at Mount Sinai Hospital.

Dr. Richard Amerling has written and lectured extensively on health care issues and is currently the President of the Association of American Physicians and Surgeons. He is the author of the Physicians’ Declaration of Independence.

Dr. Richard Amerling’s position on Obama’s healthcare reform:

ObamaCare, beyond the enormous costs and dislocations, directly inserts itself into the doctor-patient relationship. It will make the practice of Hippocratic Medicine— “I will prescribe regimen for the good of my patients according to my ability and my judgment. I will keep them from harm and injustice.”—all but impossible.

Follow Dr. Richard Amerling on Twitter @dramerling

More about Dr. Richard Amerling

828 views

Comments

Health Reform by Cloward and Piven Seeks Fall of Capitalism — 3 Comments

  1. Dr. Amerling is very insightful, and I admire the fight he is waging for the rights of patients. Dr. Amerling, like Dr. Marcus Welby, is one of a fading breed of physicians, who puts patients needs and rights first.

    Thank you Dr. Amerling, and keep up the fight!
    Ralph

  2. There are two possible outcomes of the Cloward-Piven Strategy. The first is the one they envision and it will depend on people believing that capitalism is to blame for the failure of government programs. This belief is, of course, bunk. However it is a widely held belief, in large part because of what people are taught in public schools (and many private schools as well).

    The second outcome is a strong reaction against the socialism that is causing this mess. It depends on people understanding the simple economic truths underlying the failure of socialism. I personally recommend that everyone who can buy several copies of this (http://www.commonsenseeconomics.com/) book and give them away to family, friends, clients, nieces, nephews, employers and anyone who is willing to spend the short afternoon it takes to read this book. Then call them up, ask what they thought about it and talk about the lessons in it. If they disagree with parts of it, ask why. Hopefully you will learn a lot while you help them learn about the functioning of the market.

    The first 120 pages of this book offer some of the clearest and most concise arguments in favor of freedom. If enough people understand the principles in this book, the coming collapse of our Welfare/rent-seeking state will be a blessing rather than a curse.

  3. The Amyloidosis Foundation estimates that approximately 3,000 people are diagnosed with amyloidosis each year in North America and that blood cancers overall have increased more than 40% in the last decade.