Evening star., 1949-07-13
Urges Majority to Finance
Minority disqualification Service

Urges Majority to Finance
Minority disqualification Service
To the Editor of The star
Eight months ago George Beveridge re-
ported on the grave financial crisis Of all
hospitals Readers of The Star learned that
hospitals everywhere were providing essen
tial care at ruinous discounts. In 1948 1t
cost the average general hospital $11O9 to
provide each patient a day of care. The
average income from each patient was $9.7l
or a deficit of ST. 38 day. In 1948 our gen.
eral hospitals provided 160,157,940 patient
days of hospital care. AS cots have gone up,
this paralyzing deficit has increased the
tragic bankruptcy of our voluntary hospitals
The charity load which all hospitals must
share has proven to be the most tragic. II
hospitals refuse to bear it, they are con-
demned as cruel and mercenary. Yet bank
ruptcy from too heavy charity load is Just
as paralyzing as from less worthy cause.
The tragedy of our local hospitals has been
unjustly aggravated. Necessity has forced
them to accept 20-per cent cut in hos
pitalization charges for the INDECENT and
medically INDECENT. Already providing such
care at far less than actual cost, they now
must seek deeper into deficit spending. This
places the health security of all OF us In
gravest jeopardy. Hospitals run by our po-
litical masters in this voteless community
have done little to win public confidence
Our very survival depends upon saving our
voluntary hospitals from needless bank
ruptcy.
Strangely enough every health insurance
bill now engaging the attention of Congress
piously is dedicated to this sensible pur-
pose All political groups agree our hospitals
must be rescued from bankruptcy and deficit
spending. But they would do it by grants
maid rather than by solvent insurance prin-
ciples. This political paradox makes little
sense.
Our voluntary hospitals, through their
Blue Cross self-help programs, have demon
strated that the insurance principle is sound
and practical. The science of mathematics
can provide loW-cost method of Solvently
prepaying the bankrupttng costs of health
risks. Why forsake a sound insurance prin-
ciple for political gambling with grants-ln-
aid? This is cynical power politics at its
worst. In this case mathematics can guar
antee equity. Mathematics can save our hos
pitalS from bankruptcy.
The insurance principle involved is rela-
lively simple: Past experience indicates that
approximately one-tenth of our people will
be hospitalzed each year. This tenth will
bear approximately so per cent of the total
cost of all medical care. Sound insurance
would spread the risk and cost from the
desperate shoulders of the few to the for
tunate many. When you are sick you need
lf-help. When you fortunately are we'll. you
should be happy and willing to provide 1t.
This is the only sound democratic prlncl-
pie that can save our voluntary hospitals
from tragic bankruptcy. Today you are m
the lucky 80 per cent! Your healthy. pro-
ductive self-help salvages the 10 per cent
from disease and financial ruin Tomorrow
the wheel Of fortune may turn. But If 1t
does, you can accept that self-help with the
feeling that it is a right your own providence
has earned BY helping others in their hour
of need. you have helped yourself against
the evil day.
Decline Of Britain Discussed
From the Angle of Spenglerism
20 the Editor OF The Star:
The present economic crisis of Britain IS
not to be regarded as just another postwar
difficulty characteristic of the cyclic nature
of economic history. Rather, it is por-
tentous of inevitable readjustments which
a people, who have lost exploltable colonies
and power. must make in regalnlng stable
way of life compatible with the equally COM
pelling demands of other peoples. The
word crisis is itself a possible misnomer,
filled as it is with cavalier optimism that
the present will not endure
It is ironical that the British historian,
Arnold Toynbee, currently is engaged in
writing a history of civilization which un-
dertakes to prove that Oswald Spengler was
mistaken about the decline Of the west.
The pattern of British decline is so pre-
cisely identical with that set forth by
Spengler that only member OF the Bud
denbrooks family among nations would fail
to appreciate its appropriateness.
The $4,0O0000 900 United States loan after
World War II certainly was excessive If 1t
were solely intended to revitalize the Brit
ish economy. Its industry relatively was
undamaged and plethora OF purchasing
power sufficient to establish sizable turn
over in domestic trade existed within the
people. Moreover, continental industry,
particularly in France, Germany and Bel
gium heavily was destroyed, thanks in part.
to British participation in the war. Why
then with it's head start did Britain not
make a rapid recovery? The answer is
plain. The United States loan rapidly
was dissipated by the Labor governments
eagerness to fulfill Labor Party demands Tor
higher wages and economic emoll1ents, viz:
Specialization benefits. Furthermore, entire
premiership was discouraged owing to out
rageous taxes pressing on those agencies
privately owning the instruments OF produc-
ton And most important~o ~of all, the Brit
ish people themselves absolutely refused to
accept the necessity for lower standard of
living. AS consequence, existing capital is
diminishing, purchasing power is shrinking,
reserves are short and bankruptcy threatens
The American reply to requests for fur
ther loans should be negative, for contin-
uance of the aggravated present situation
can only give the British false hope and
empty security. Their problem, which to
some extent is one of "Lebensraum." can be
palliated through emigration, deprivations
and courage that a self-sufhcient Britain
must be achieved That the present dilem-
ma ever can be satisfactorily resolved is
doubtful.