American Healthcare
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American Healthcare

Why It Costs So Much Yet Remains a Beacon of Growth and Development

Peter Hilsenrath, PhD

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eBook - ePub

American Healthcare

Why It Costs So Much Yet Remains a Beacon of Growth and Development

Peter Hilsenrath, PhD

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About This Book

Selected by the Association of University Programs in Health Administration
for the Bugbee-Falk Book Award

Is the health sector a curse or a blessing? The American health sector now accounts for a fifth of the economy. American healthcare spending per capita far exceeds that of other developed countries. Yet our health, as measured by life expectancy and infant mortality, is poor by comparison with the developed world. Other measures of quality including hospital-acquired infection are too common. Healthcare costs financially cripple households despite advances associated with the Affordable Care Act. There is widespread dissatisfaction with the American healthcare system and support for more change.

It is also the case that the health sector has been a leader in the evolution of the American economy. Economic development is driven by innovative technology. We tend to applaud new technology and the improvement it brings to our lives. Important recent technologies often grow rapidly and faster than the wider economy. This leads to larger shares of the economy. Yet there is considerable apprehension about costs and economic impact of health spending. This book details important health sector institutions and uniquely, explores linkages between healthcare and broader economic growth. The book addresses asymmetric information between providers and consumers as well as between insurers and beneficiaries. There is a focus on monopoly power in labor markets which contributes to inefficiencies in the system. The author also discusses cost-effectiveness and allocative efficiency as well as emphasizing productivity and its relationship to the wider economy.

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I HISTORY AND EVOLUTION

Chapter 1 Origins and Evolution of Healthcare

DOI: 10.4324/9781003186137-2

Prehistoric Healthcare

Health is perhaps our most treasured asset, evident in the great lengths we go to in safeguarding our well-being and that of our loved ones. Our generation is notable for the scope of resources we are willing to spend on health services. The level of technology in healthcare today simply does not compare with anything in the past, and it is certainly the case that modern healthcare affords services unimaginable in earlier times. But health services have been an important part of the economy and social fabric for millennia.
We know that Homo sapiens and others from our evolutionary tree cared for one another for hundreds of thousands of years, but little is known of their medical technology. We believe, for example, that our forebears used herbal and other natural remedies—that they ingested clay to absorb toxins and, topically, to fight infections and treat wounds. (Use of clay is not unique to humans as other primates and birds ingest clay.) Moreover, chimpanzees and other apes are known to eat trichome plants to combat parasites, and perhaps early humans did this as well. Certainly, there is evidence of prehistoric people using birch bark as a laxative and setting broken bones. Such simple physical measures were usually combined with spiritual intervention, which was overseen by the tribal medicine man or shaman.
A common intervention in human prehistory was trepanning, which involved cutting, drilling, or scraping a hole in the skull. An example of one such skull is shown in Figure 1.1. Trepanning was done, it is thought, to relieve cranial pressure after an injury as well as to treat mental illness, and it is believed to have been ritualistic in many cases, though little is understood of the context of such practices. Trepanned skulls have been found dating back 7,000 to 8,000 years.
Figure 1.1 Trepanned Skull
Source: File: Trepanned skull of a woman-P4140363-black.webp—Wikimedia Commons
Author: Rama
Creative Commons 3.0
Evidence of this remarkable medical procedure has been found in different locations scattered around the globe, including Europe, China, Siberia, North and South America, Africa, and Polynesia. The excavated skulls show that many of these trepanned “patients” survived, at least for a time; most are from men, perhaps because men were more likely to be injured in battle or otherwise. In any case, the surgical ability of our ancestors and the endurance of these patients should humble our own sense of medical prowess.

The Ancient World Egypt

In ancient Egypt, one of the great early civilizations, much was understood about the human body and maintaining its health. The Nile River, a pillar of Egyptian civilization, was a key water source to support agriculture and livestock, but less well known was the use of the Nile for washing and hygiene. No doubt it had a role in public health practices via toilets, a convenience for wealthier Egyptians, and was also used to dispose of sewage, which of course undermined public health downstream.
Egyptian medical practices spread beyond Egypt’s political reach as historical evidence shows. The borders of ancient Egypt varied over the millennia, at times including parts of what is now Sudan, South Sudan, and Israel, as shown in Figure 1.2. The Old Testament describes close ties between Canaan and Egypt. There is historical evidence to support this. Some medical practices may have spread. Circumcision, for example, was commonly practiced in ancient Egypt (as well as other cultures of the ancient Middle East including Mesopotamia), and this is thought to have been done at least partially for hygienic reasons. The practice has endured and remains widespread among Muslims and Jews.
Figure 1.2 Ancient Egypt and Mesopotamia, c. 1450 BC
Source: https://commons.wikimedia.org/wiki/File:Ancient_Egypt_and_Mesopotamia_c._1450_BC.png
Author: Svift
Creative Commons CC0
Religion and medical care in the ancient Middle East were usually integrated to some extent, infusing healing and health with a spiritual overlay. Medicine was commonly taught in religious settings and healthcare providers remained tied to these communities. They were in some respects like “medicine men” in native American culture or “witch doctors” in southern Africa. Like them, the ancient Egyptians had hundreds of medical and health-related drugs and products. We know of such unguents and palliatives from translations of hieroglyphic writing on papyrus; thanks to the translations made possible by the Rosetta Stone (discovered in 1799), scholars were able to unlock the hieroglyphics, opening a window to medicine and health in the world of the pharaohs.
We have learned that the ancient Egyptians used copper salts and honey combined with grease as antiseptics. (Honey is quite resistant to bacteria.) They concocted mouthwashes with mint and other ingredients as a remedy for bad breath. They used aloe for burns, opium and thyme for pain, and even toothbrushes and toothpaste for oral hygiene. They also used adhesive bandages for wound care. Perhaps, the first great dentist of ancient Egypt was Hesy-Ra of the third dynasty; other notable dentists followed in what became a long tradition of Egyptian dentistry.
Mummification was an art as well as a science in ancient Egypt. Professionals who practiced it used specific medical compounds, special surgery, and wrapping and stitching techniques with great skill. This coincided with the development of surgical tools and advances in the understanding of human anatomy. So skillful were the experts in mummification, the remains of Ramses II are remarkably well preserved after more than 3,000 years, as shown in Figure 1.3.
Figure 1.3 Mummified Remains of Ramses II: 1279–1213 BC
Source: https://commons.wikimedia.org/wiki/File:RAMmummy.webp
Creative Commons CC 3.0

Mesopotamia

Along with Egypt and the empire of the Hittites, Mesopotamia was a great ancient civilization. Centered on the Tigris and Euphrates rivers, as shown in Figure 1.2, it expanded at times to influence a much wider area. Medicine was closely integrated with religion and spirituality among the Mesopotamians, just as it was among the Egyptians. Its Code of Hammurabi, from the 2nd millennium BC, offers us a window into that long-ago world of healthcare in which, for example, price discrimination was routine (i.e., different prices are charged for different classes of consumers). This practice effectively segregates consumers by income group. In ancient Mesopotamia medical prices were highest for well-to-do citizens and lowest for slaves, which, interestingly, finds a parallel today in the United States: Here, the highest prices are associated with wealthy consumers and their generous health insurance plans while some of the lowest prices are found in Medicaid programs for lower-income Americans. We also know Mesopotamians imposed penalties on medical practitioners for poorly executed work, some of which could be quite harsh. Medical practices then were similar to many today, including simple surgery, use of plaster casts, and bandaging. As in Egypt, hygienic practices were recommended for improved health.

Greece and Rome

Among the ancients, Greece and Rome are most responsible for establishing the medical foundations of healthcare in the United States. The influence is so strong that Latin was required in the curriculum for medical students until the second half of the 20th century, and much existing medical terminology is derived from Greek or Latin.
The Greek physician Hippocrates (460–370 BC) is considered to be the father of Western medicine. He helped establish a scientific approach to medicine, which included a careful study of the manifestations of disease, the influence of diet and environment, and the use of clinical histories. It was doctors, Hippocrates maintained, not just the gods, who could understand and treat health issues and provide a prognosis for medical conditions. He performed early work on draining chest cavities as well as on treating hemorrhoids. An important early medical book, the Hippocratic Corpus, is associated with him (although it is believed to have multiple authors), and here is found the Hippocratic oath, a ritual that medical and other healthcare students routinely take upon graduation. It commits the graduate to a lifetime of ethical practice. One aspect, with important ramifications today, is a commitment to do whatever possible to improve patient health. Among the modern variations is the promise to “apply, for the benefit of the sick, all measures [that] are required, avoiding those twin traps of overtreatment and therapeutic nihilism.” This can be interpreted as providing care when it is helpful but refraining when it is not. Nowhere in the oath, however, is the concept of economic efficiency stated, in which overtreatment is defined as excessive cost relative to benefit. From a modern perspective, this absence appears as a gaping hole in the ethical identification of how much care is too much. It is where healthcare providers and health economists commonly part company. In a world where healthcare institutions are becoming more market like, it is particularly problematic for those who are not prepared to use cost and economic criteria because markets do.
Even though the modern world owes much to early Greek medicine, the ancients had certain misconceptions that have had serious consequences. For example, the ancient Greeks and Romans believed in humorism, which entails belief in the importance of balance between bodily fluids: blood, phlegm, black bile, and yellow bile. These in turn were associated with air, water, earth, and fire, respectively. Treatments using the theory of humors might have recommended exercise and diet, quite benign measures, but others such as bloodletting, emesis, or use of enemas could be counterproductive. The theory of humorism in Western medicine continued through the 18th century and into the 19th century. George Washington’s death, in 1799, is sometimes attributed to misplaced humorism. To treat a bad sore throat, the ex-President’s chief aide called for his doctors, who were skilled at bloodletting. Washington died after they drained 40% of his blood.
Another great physician from the world of ancient Greece and Rome was Galen of Pergamon, who lived from 129 to around 210 AD. Galen advanced the understanding of human anatomy by means of dissections of monkeys and pigs—human dissection was generally frowned upon as the human body was considered inviolate. Such prohibitions persisted in Europe until the later Middle Ages. In Hellenic Alexandria, however, important advances in knowledge of human anatomy occurred, which provided physicians a better grasp of the nervous system, the eye, and the heart (with its component chambers and valves).
Galen also put forward a theory of blood circulation. But extrapolating from the dissection of animals to human structures and processes had its limits, and as a result, his theory contained errors. Blood circulation in humans was not really understood until the 13th century with the scheme of pulmonary circulation advanced by Ibn al-Nafis of Damascus. Galen also served as a physician to gladiators in Pergamon and acquired a reputation for great competence as only five gladiators died under his four years of service. He later served as a physician to Roman emperors Marcus Aurelias, Commodus, and Septimius Severus.
Some symbols of Hellenic medicine persist in the present day, such as the snake of Asclepius. The Greek god of medicine, Asclepius was the son of Apollo; his daughters included Hygeia, the goddess of cleanliness, and Panacea, the goddess of universal remedy. His snake-entwined staff, known as the Rod of Asclepius, is included in the World Health Organization logo, as shown in Figure 1.4.
Figure 1.4 Rod of Asclepius
Source: https://commons.wikimedia.org/wiki/File:World_Health_Organization_Logo.svg

Byzantine and Islamic Contributions

The world of late antiquity in Europe was a period of great ferment and a time when one might have expected a halt to advancement in human medicine as the dark ages approached. To sketch just a few political and cultural changes: Christianity gained as a countervailing force against Hellenistic values, especially in the 3rd and 4th centuries. At the same time, much of the western Roman Empire became weakened and subject to invasion by various tribes including Vandals, Goths, and Huns. These conditions contributed to Constantine the Great’s conversion to Christianity and his decision to move the Roman capital to Constantinople. The eastward shift was associated with the gradual erosion of Latin and the ascendency of Greek in wh...

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