Advances in the way that healthcare services are delivered, most now taken for granted, arose the same way as progress in other spheres of commerce — as a result of innovators who risked capital in search of profits. These new ideas are essential if we’re going to solve our long-term fiscal woes by increasing productivity in the healthcare sector to get more medical care for each dollar we spend.
But the capital for these efforts typically comes from investment firms similar to the ones that the President is now panning in his political campaign. This reflects a dim view of free enterprise that’s also echoed in Obamacare. Provisions in the President’s healthcare plan directly penalize investment returns earned on the delivery of healthcare. These approaches are foiling the entrepreneurial ecosystem that creates disruptive new healthcare companies in the first place.
Under Obamacare, these efforts aren’t just a policy of frugality — an effort to cut costs in the healthcare system by capping profitability. Like the President’s attacks on free enterprise, it’s the reflection of a much broader political philosophy.