We’ll start by revealing a few eye-popping stats:
- 80% of all payroll increases over the last 20 years have gone to healthcare costs.
- 7 out of 10 Americans have less than $1,000 in savings
- 9 out of 10 physicians across the country are unwilling to recommend the profession to others
- In 1976, health care consumed 7% of the federal budget. Today it consumes 27%.
America’s healthcare crisis stems from a system that remains unsustainable in its present state. Our political leaders continue to fumble with failing solutions, remaining steadfast in their mutual finger-pointing. The reason that neither party’s plan has been or will be effective is in the failure to identify and rectify the structural problems of today’s healthcare system.
To do so, would in fact require political leaders to effect massive change in the very nature of health coverage, promote the rise of consumer free-market forces, as well as digest the natural industry contraction that would follow from such.
Dr. Steve interviews a guest who dedicates his life to opening the public’s eyes to the same level of danger we saw in the movies Moneyball and The Big Short. He also advocates that many ‘fixes’ for healthcare’s biggest woes are already possible, and requires far larger scaling.
Dave Chase is a serial entrepreneur who apart from having made his mark in a technology and healthcare business, is hard charging to unleash a mass media movement. One which uniquely addresses the status quo of what we have come to know as our growing national nightmare.
Dave is the Managing Director of the Quad Aim Fund, Executive Producer of The Big Heist and co-founder of the Health Rosetta Institute. He’s spoken at TED and is the author of the book, The CEO’s Guide to Restoring the American Dream.
Prior to this, he was the founder for what eventually became Microsoft’s healthcare business unit – with more than $2B in yearly revenue. He also founded Avado, which was eventually acquired by WebMD.
In this Red Hot Healthcare episode, Dr. Steve and Dave Chase discuss:
- Three Trillions Reasons to Protect the Status Quo
- Health Rosetta – and Companies Doing Healthcare Right
- A Fiduciary Duty of Employers to their Employees & Health Coverage?
- The ‘Bottom-Up’ Approach of Health Reform via The BIG HEIST
- Health Consumerism, Patient Engagement, and Physician Burnout
The following is just a short snippet from this engaging interview between Dr. Steve and Dave Chase on Red Hot Healthcare.
[on Consumer Affordability Woes]
DR. STEVE: “I think a lot of people are starting to open their eyes, recognizing that there is a real difference between health care and the business of health care.
I want to frame out for the audience just how bad things have become in health care – especially with affordability. Give us an idea of the type of numbers that we’re looking at today.
DAVE CHASE: “There’s a few numbers. At the big picture level, healthcare is about 27% of the federal budget. That’s about four times what it was back in 1976. It’s clearly the number one overall driver in wage stagnation, and the number one cause of personal bankruptcy.
We’re the undisputed world leader of medical-bill driven bankruptcy. If you look at it, there’s about a million of them a year…and 70% of those have insurance. So just having health insurance alone does not solve it.
We’re also at a time where 70% of Americans have less than $1,000 in savings – half of those people have no savings at all.”
DR. STEVE: “I think…just to jump in…I don’t think many people can appreciate this – and especially some at the top of healthcare.”
DAVE CHASE: “Yeah, there was this article in the Wall Street Journal that showed how healthcare costs have gone up since 2007 – and what it came out of for the middle class.
It wasn’t coming out of their vacations to Tahiti – it was coming out of their food, clothing, transportation. In the article, there was actually a picture of a couple on their boat in Boise, Idaho fishing…because they couldn’t afford protein in their diet.”
[on Health Rosetta]
DR. STEVE: “You’ve come up with what seems to be a workable long term solution to solving many issues with healthcare costs. I’d like you to get into Health Rosetta Dave – and how it’s being used successfully today.
DAVE CHASE: “It goes back to when I did a root cause analysis of virtually every disfunctional aspect of health care. When you ask the ‘5 Whys’, it always came back to those who continually purchase health care [benefits]poorly – in the private and public sector.
What we found was really exciting that basically every solution to fix health care had been invented, proven, and modeled to scale.
Just like the Rosetta Stone decoded the indecipherable Egyptian hieroglyphics, a lot of people believe fixing healthcare is indecipherable. So I just gave [this initiative]the name of Health Rosetta, and its members include people who are ‘doing’ it.
Organizations like Rosen Hotels and many others. They’re spending 20-55% less per capital on health benefits with some of the absolute best benefits packages in the entire country.
And on the health business side, the thing that we [Rosetta] kept finding is that those health service organizations who had achieved the Triple Aim (better patient experience, better outcomes and lower costs), actually focused on the fourth aim – taking better care of the providers and care team.
Sadly, we have record levels of burnout in physicians and nurses, and it’s only common sense that this affects the patient experience and outcomes, like the Lancet reported.”