March 27, 2006
Nationalized health care doesn’t abolish the problem of scarcity

I’m in Belfast, Northern Ireland, UK for my spring break week, teaching a course to MA finance students at Queen’s University. It’s something I’ve done every year for twelve years, but it almost didn’t happen this year. The UK’s National Health Service almost kept me out.

As I’ve mentioned here before, I'm awaiting a kidney transplant. I started hemodialysis (mechanical blood filtering) three weeks ago, on the standard schedule of three sessions of a week, three-plus hours per session. To travel within the US now (e.g. to Las Vegas for the APEE meetings in April), I first have to reserve a session at a local dialysis clinic in the destination city. Not really a problem: the US is filled with for-profit clinics that are happy to accommodate extra clients. My health insurer has a handy web engine for locating, near any destination, the closest clinics that it certifies and will pay for “in-network”. There’s also a handy clinic finder at www.dialysisfinder.com.

The UK’s National Health Service, however, isn’t for-profit. It has waiting lists for many of its services to UK citizens, possibly including dialysis. So what incentive does it have to take on foreign travelers as clients? My initial inquiries were coldly received. I’m not sure why the dialysis clinic at Belfast City Hospital did finally find me a space in their late shift (7-11pm), but presumably the inquiries from my contacts at Queen’s didn’t hurt. (By the way, the NHS is charging me handsomely.) Why aren’t there also for-profit clinics here that would serve travelers, you ask? They’re illegal in the UK.

CORRECTION: That last sentence was in error; private dialysis clinics (and private hospitals more generally -- thanks to reader Andrew McGuinness for the correction) are not illegal in the UK, merely rare (private dialysis made up about 5% of the market in the UK, versus 77% in the US, according to Fig. 1 of this study). Since the NHS charges less, the private clinics' clients appear to be mostly people who switch to NHS service once they get off the NHS waiting list. There are two private dialysis clinics in London, according to this list, dated 2000; at that time there apparently weren't any others in the UK.

On the NHS rationing front, the front page of The Sunday Times yesterday carried the following headline: “Doctors call premature babies ‘bed blockers’”. Reads the text of the article:

As the NHS faces an increasing financial crisis, with beds being closed and jobs axed, it says these very premature babies are ‘blocking’ much-needed intensive care cots, sometimes forcing healthier infants to be transported by ambulance to other hospitals. ...

The statement reflects a growing view among child specialists that babies born under 25 weeks should be denied intensive care and allowed to die.

Why not let parents spend their own funds (including private insurance) to build additional facilities for saving premature babies? The possibility is not even mentioned in the article. That would be illegal in the UK. CORRECTION: Not illegal; private insurance is merely rare.

Posted by Lawrence H. White at 11:16 AM in Economics  ·  TrackBack (0)

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

Our Bloggers
Joshua Hall
Robert Lawson
E. Frank Stephenson
Michael C. Munger
Lawrence H. White
Craig Depken
Tim Shaughnessy
Edward J. Lopez
Brad Smith
Mike DeBow
Wilson Mixon
Art Carden

Blogroll

Search

Archives
By Author:
Joshua Hall
Robert Lawson
E. Frank Stephenson
Michael C. Munger
Lawrence H. White
Edward Bierhanzl
Craig Depken
Ralph R. Frasca
Tim Shaughnessy
Edward J. Lopez
Brad Smith
Mike DeBow
Wilson Mixon
Art Carden

By Month:
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004
September 2004
August 2004
July 2004

Powered by
Movable Type 2.661

Site design by
Sekimori

XML