Media Release
For Immediate Release
October 25, 2002
A Recipe for Commercialization and Privatization
OTTAWA -- The Canadian Health Coalition released the following statement and analysis in response to the release of the Kirby Senate Committee's final report: "The final report of the Kirby Senate committee, overall, is designed to achieve commercial objectives at the expense of the public interest. The report released today is based on the premise that health care is a commodity to be bought and sold and that Medicare should be subjected to market based reforms. Canadians on the other hand view health care as a public good that needs to be protected from the market. Key recommendations in the report are taken from the Alberta's health care privatization plan developed by Don Mazankowski, who sits on the board of Great West Life.
"The report calls for evidence based criteria. But on the central question affecting the sustainability of public health care in Canada - the role of for-profit service delivery - the report tampers with the evidence that clearly demonstrates for-profit ownership is more dangerous, costly, inequitable, fraudulent and unaccountable. The report says: "the Committee believes that the patient and the funder will be served equally no matter what the corporate ownership of a health care institution may be..." (p. 54). The expert testimony, including that of Harvard's Dr. A. Relman, published in peer reviewed journals is dismissed on the basis of opinion and vested financial interests.
"Instead of a plan to secure the long-term future of Canada's public health care system, Kirby's plan will facilitate the commercialization and privatization of Medicare. The Canadian Health Coalition renews its call for the immediate resignation of the committee chair, Senate Kirby, because of conflict of interest. It is unethical for public office holders to influence government actions that further their financial interests. Sen. Kirby is a director of Extendicare Inc and sits on three committees of the board. Canadians know it is unwise to entrust the sick and the vulnerable to profit-seeking firms and await with hope the release of Commissioner Romanow's final report.
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For further information
Michael McBane, National Coordinator
Canadian Health Coalition
(613) 521-3400 Ext. 308
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The Canadian Health Coalition has decoded the following key recommendations in Kirby’s final report:
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* Market Based Hospital Restructuring and Funding (Chapter 2): "making the funder neutral on the ownership structure of the institution", and giving institutions greater operating independence from government leading to a reduction in government control and a reduction in the number of their employees. (pp.25-59) This is an 'Arthur Anderson' model for Medicare: markets are good, governments bad.
* Devolving Further Responsibility to Regional Health Authorities (Chapter 3) devolution of authority to Regional Health Authorities to sign contracts with for-profit hospitals, clinics, drug companies, and primary care services (p. 63). This is a recipe for privatization taken from the Mazankowski Report. According to the CEO of the Calgary Health Region, the headquarters of health care privatization in Canada, the recommendations in Chapters 1 and 2 will help "to depoliticize the allocation of resources" to investor owned businesses and market based health care. (p. 30)
* The Health Care Guarantee (Chapter 6): For each type of procedure or treatment, a maximum waiting time be established. When the maximum time is reached, the government pays for the patient to seek treatment in another jurisdiction, including the United States. (p. 117). While waiting times have to be shortened in some critical areas, Kirby's 'Care Guarantee' could allow provinces to set standards that are impossible to meet as an excuse to show the public system doesn't work. Those calling for a private parallel for-profit health care delivery system have no incentive to ensure the public system delivers timely services. Those in public office and also involved with companies selling private health care services have even less incentive.
* U.S.-style Drug Insurance (Chapter 7): "Protecting all Canadians against catastrophic prescription drug costs" and skyrocketing pharmaceutical profits by having taxpayers pay 90% of the costs over $5000 in any given year. This U.S. style drug insurance plan with a mix of private and public insurance is based on high deductibles and out of pocket expenses up to 3% of family income. Taken together with current plans at Health Canada to ease restrictions on direct to consumer drug advertisements, this is a drug plan that only Big Pharma could love.
* More Federal Money for Home Care Industry (Chapter 8): Post-acute home care services following an episode of hospitalization. This recommendation is restricted to a narrow definition of time limited care following hospital care, a service provided by ParaMed Inc., a wholly-owned subsidiary of Senator Kirby's company, Extendicare Inc. Naturally it is not in the financial interest of Kirby to recommend a national publicly delivered home care program with national standards. Evidence demonstrates however that investor-owned health corporations divert funds from care to profits. According to the U.S. Department of Justice, the sick and elderly are vulnerable in the hands of a financially motivated stranger.
* Commercializing the Outcomes of Health Research (Chapter 12): A greater role for industry in the spectrum of health research commercialization. "The Committee is of the view that the majority of industry works to high standards of ethics... Indeed, companies cannot expect to survive in today's world if they flout society's expectations." (p. 235). The evidence suggests otherwise. Food and drug conglomerates routinely put profits before health. When university research and science is captured by corporate proprietary ownership, data on hazardous products and substances is suppressed.
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