AMA leader says companies can help ease health crisis

Michelle Swafford

Friday, Jan. 28, 2005 | 10:51 a.m.

The current health care system is in a crisis, but there are several things employers can do to make a difference.

That was the message of American Medical Association President Dr. John Nelson to Las Vegas Valley business leaders during the Las Vegas Chamber of Commerce's Preview Las Vegas on Thursday.

About $800 billion of $1.7 trillion spent on U.S. health care in 2003 was spent on preventable medical conditions: obesity, sexually transmitted diseases, teen pregnancy, violence, suicide, accidents, and drug abuse, including alcohol and tobacco, Nelson said.

"Obesity alone costs us $75 billion," he said. "It kills 400,000 people each year, second only to tobacco use."

Employers could help by encouraging everyone to wear seatbelts and offering wellness programs and incentives for employees to join gyms or stop smoking, Nelson said after the speech.

"Our behavior is causing half the cost," he said after his speech. "We need to look at the cause and effect versus throwing more money on the system."

People are indifferent and that's why they have not changed their behaviors or addressed the factors that escalate health care costs, he told business leaders.

"The only possible way to decrease health-care costs is to increase health- care quality," said Nelson, who is an obstetrician and gynecologist in Salt Lake City. "We have the science and we have the resources. All we need is the will power."

Poor care and a lack of care, which is common among uninsured patients, increase the cost of health care, he said.

Nationally, there are 45 million uninsured people and about 450,000 people live in Nevada, he said, adding that 90 percent of them live in homes with two incomes. Those people seek care in emergency rooms, often once their conditions are serious, Nelson said.

Everyone pays for the uninsured patients' bills through citizen's taxes and insurance premiums and lost wages and productivity, he said.

Changes in how health plans are purchased and administered would also improve the health care system, Nelson said.

The AMA would like uninsured patients to receive federal income-based tax credits to buy insurance, which would benefit at least 95 percent of the people who lack insurance, Nelson said, adding that the program would cost about $60 billion annually.

The organization that represents about 250,000 physicians also would like to see increased emphasis on individual health plans with more options and fewer mandated health benefits versus employer-owned health plans, he said.

The AMA is also pushing for malpractice liability reform because escalating premiums and the threat of litigation are forcing doctors to retire, relocate or reduce services, Nelson said, adding that his annual premium is $81,000 and in Florida some doctors are paying $277,000 per year.

About 70 percent of the lawsuits against doctors never go to trial, but the defense costs still range from $40,000 to $60,000, Nelson said. Of the cases that go to trial, doctors are found to be not negligent 86 percent of the time and the defense costs are about $90,000, he said.

Nevada voters passed a ballot initiative in November that limits noneconomic compensation and attorneys' fees.

"I think that will make a difference in the doctors that are going to be here (in Nevada)," Nelson said.

In another Preview Las Vegas event, Retired Lt. Col. Oliver North, now a Fox News correspondent, spoke to about 1,000 people at the Cox Pavilion on Thursday.

North shared stories about recent visits to Iraq as a Fox reporter, and challenged the local business community to hire returning soldiers and support the National Guard and Reserves.

North said he sees this Sunday's elections in Iraq as a big step in fighting the war of terrorism.

"I was in Afghanistan in October when people were able to cast a vote for the first time, and it's going to happen again on Sunday in Iraq thanks to the blood and sacrifice of American soldiers," North said.

North said that because of the hospitality industry Las Vegas felt the effects of the Sept. 11, 2001, terrorist attacks as much as any city including New York.

"I don't have to tell you that Las Vegas is back," North said.