Pub. 17 2020 Issue 1

12 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S — H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S unemployment filings from previous records shortly after the pandemic and that will only go up. This is uncharted territory. Before this pandemic, we already had record levels of income inequality that will only become worse. The only way to prevent what could be an incredibly ugly economic chapter in Ameri- can history is through bold, aggressive, systemic government action. This means programs like a Green New Deal which would provide infrastructure jobs. It also includes policies like Medicare-for-All, the elimination of student debt to take the shackles off an economically despondent generation, as well the possibility of universal basic income. We must start looking at a different way of thinking as we move into the future and not relying on stale ideas that have already proven to be ineffective. Another fascinating story was recently published that highlights the uncomfortable dynamic in the United States between the profit motive that infects our health care system and the need actually to serve patients as best as possible. In early April, ProPublica published a report regarding the cutting of hours of vital medical workers during this pandem- ic. "TeamHealth, a major medical staffing company owned by the private-equity giant Blackstone, is reducing hours for emergency room staff in some places and asking for voluntary furloughs from anesthesiologists, the company confirmed to ProPublica. Multiple emergency room providers working for a main competitor, KKR-owned Envision Healthcare, said their hours also are being cut. Even as some hospitals risk running out of room to care for COVID-19 patients, demand for other kinds of health care is collapsing. This irony is straining the business models of hospitals and the companies that staff them with doctors and other medical professionals." Private equity firms have bought up numerous hospitals around the country in recent years and their effect is being highlighted during this pandemic. According to a report pub- lished that summarized findings by organizations such as The Brookings Institute, "Private equity firms are using borrowed money to assemble medical empires across the country. Not only do consolidated hospitals harm patients with higher prices and worse outcomes, but the shaky financial pictures that result habitually lead to massive cost-cutting and closures of unprofitable facilities, which put entire communities at risk of losing access to medical care. It's the same value-extraction strategy private equity specializes in; only this time, it's quite literally a matter of life or death. Declines in competition when hospitals merge mean that, even if there is a decline in costs, it won't translate into lower prices or health insur- ance premiums. Indeed, there is considerable evidence that mergers enable hospitals to pad profit margins by negotiating higher prices for procedures with insurance companies." All of these factors, which all fall under the umbrella of our health insurance system being tied to a profit motive, are interconnected and have added up to a health care system that is woefully unprepared for a pandemic of this degree. Amer- ican health care has not been about finding ways to provide the best care for Americans but about lining the pockets of executives. There are certain consumer industries where that is perfectly fine (i.e., cars or computers), but the profit motive seems misplaced and, frankly, amoral when it comes to some- thing as vastly different as health care. No one will die if they can't afford a brand-new cell phone, but they will if they can't afford basic medical costs. For the last 40 years, the American federal government has seemingly had one mission, and they've executed that mis- sion quite successfully. Let's funnel money into the pockets of corporations and the mega-wealthy, give them the loudest voice in Washington by far, and only nominally pretend to care about the concerns of the average voter. This has, quite honestly, applied to both sides of the aisle. And this pandemic has shined a light on that fact in a shockingly powerful way. My ask to the American people would be to demand better leadership from elected officials. Don't settle for lousy gov - ernment. There is simply no excuse for the world's wealthi- est, most powerful country to be handling this crisis in such an unfocused, undisciplined, unprepared manner. There's a reason we pay taxes and that is because the government is supposed to work for its citizens. Somehow that fact has been completely lost in this country and, more than ever, it is apparent at this moment. This is a chance for Americans to stand up and demand better from a federal government that has largely done nothing for its citizens in the last several decades. We should use this crisis as a chance to step back and think about what they want this country to be in the long term, how do we get there, and how do we achieve a system of governance that can function properly for the vast majority of its citizens instead of a select few. n n WHAT THE CORONAVIRUS HAS REVEALED continued from page 11 It’s money in the bank. Y ou want your customers to grow and prosper. After all, their success adds to your bottom line. We can help them achieve their financial goals, because more money in their pockets means more money in your bank. CPAs Albuquerque: 505 843 6492 atkinsoncpa.com Henry South, CPA, CVA