Allyson Pollock - Wall Street - our NHS

Posted by: Witch Doctor | November 26, 2007

Allyson Pollock - Wall Street - our NHS

DO THE DARLINGS OF WALL STREET NEED US NOW?

Whatever your political persuasion, you need to be aware of some of the things Professor Allyson Pollock has been saying over the past decade.

You need to read her papers, consider them carefully, and ask whether her predictions are now coming to pass.

Is she a visionary academic or a scare-mongerer?

The Witch Doctor is gradually sifting through her publications.

The Witch Doctor might just get round to opening a page under My Black Cat linking to her publications.

If I can be bothered spoon feeding you.

Or maybe I’ll put a rocket under you with a very potent spell indeed!

IS WALL STREET AN NHS PREDATOR?

HOW THE WORLD TRADE ORGANISATION IS SHAPING DOMESTIC POLICIES IN HEALTH CARE

Here is an extract from the above paper (the bold text is my own):

“The WTO’s focus on the service industry reflects the sector’s growing commercial importance. As profitability in manufacturing has declined because of international competition, US and European corporations have turned to services as an alternative source of profit. According to the European Commission “The service sector accounts for two thirds of the [European] Union’s economy and jobs, almost a quarter of the EU’s total exports and a half of all foreign investment flowing from the Union to other parts of the world”.5 In the USA, more than a third of economic growth over the past 5 years has been because of service e x p o r t s .6 The World Bank has calculated that in less developed countries alone, infrastructure development involving some private backing rose from US$15·6 billionin 1990 to $120·0 billion in 1997. Around 15% was direct foreign investment in public schemes.7 Governments in Europe and the US link the expansion of trade in public services to economic success, and, with the backing of powerful coalitions of transnational and multinational corporations, the race is on to capture the share of gross domestic product governments currently spend on public services. The European Community has set up the European Services Network of multinational industry representatives, led by Andrew Buxton, chairman of Barclays plc, to “advise European union negotiators on the key barriers and countries on which they should focus . . . ” (www.gats-info.eu.int/, available November, 1999).

In the USA, the Coalition of Service Industries is calling for a majority foreign ownership to be allowed for all health facilities. “We believe we can make much progress in the negotiations to allow the opportunity for US businesses to expand into foreign health care markets. . . Historically, health care services in many foreign countries have largely been the responsibility of the public sector. This public ownership of health care has made it difficult for US private-sector health care providers to market in foreign countries . . .” (www.uscsi.org; available November, 1999).

The US trade delegation goes even further. “The United States is of the view that commercial opportunities exist along the entire spectrum of health and social care facilities, including hospitals, outpatient facilities, clinics, nursing homes, assisted living arrangements, and services provided in the home.”8

Waiting in the wings of the WTO talks are the US multinationals, including the pharmaceutical industry, long-term-care sector, and the health-maintenance organisations. Known in the mid-1990s as “the darlings of Wall Street,” the multibillion dollar business of health-maintenance organisations depends heavily on a mixture of public funding, private health insurance, and user charges.8 Much of its impressive profitability was brought about by the acquisition of non-profit hospitals in the USA.9

However, by 1997, the stock-market boom in healthmaintenance organisations had ended,1 0 and earnings by these businesses of $700 million in 1996 turned into $768 million losses by 1998.8 Profits fell because of market saturation, government and employer strategies to contain health-care costs, and high-profile scandals. To restore profitability, the industry has begun to lower benefits, increase premiums, and withdraw from selected markets. It has also tried to capture new markets abroad by acquiring publicly run facilities. The industry has received influential backing for its foreign-acquisitions policy from the US government, the World Bank, and multilateral financial institutions such as the Inter-American Development Bank. These bodies have supported “managed care initiatives that convert public health care institutions and social insurance funds to private management, private ownership, or b o t h . ”1 1

Health-maintenance organisations target the public funding behind foreign health-care systems. Multibillion dollar social-security or tax pools are effectively privatised when public health care is redirected through private-sector o r g a n i s a t i o n s .“

Yes, the time has come to pay attention to Allyson Pollock.

RECENTLY ADDED TO “PAPERS” SECTION

NOVEMBER 2007
OUR NHS, OUR FUTURE
18 September 2007 nationwide consultative event, key findings

NOVEMBER 2004
CASE STUDY - TEAM BUILDING FOR HOSPITAL AT NIGHT

a red apple ……………………