Paul Buchheit analyzes privatization at Common Dreams:
The Project on Government Oversight found that in 33 of 35 cases the federal government spent more on private contractors than on public employees for the same services. The authors of the report summarized, “Our findings were shocking.”
Yet our elected leaders persist in their belief that free-market capitalism works best. Here are a few fact-based examples that say otherwise.
Health Care: Markups of 100%….1,000%….100,000%
Broadcast Journalist Edward R. Murrow in 1955: Who owns the patent on this vaccine?
Polio Researcher Jonas Salk: Well, the people, I would say. There is no patent. Could you patent the sun?
We don’t hear much of that anymore. The public-minded sentiment of the 1950s, with the sense of wartime cooperation still in the minds of researchers and innovators, has yielded to the neoliberal winner-take-all business model.
In his most recent exposé of the health care industry in the U.S., Steve Brill notes that it’s “the only industry in which technological advances have increased costs instead of lowering them.” An investigation of fourteen private hospitals by National Nurses United found that they realized a 1,000% markup on their total costs, four times that of public hospitals. Other sources have found that private health insurance administrative costs are 5 to 6 times higher than Medicare administrative costs.… Read the rest