Why, and How Much, Should I Invest in Fixing America's Broken Healthcare System?

Ask yourself three questions:

  1. Do you believe that the price of healthcare services, and spending on healthcare, are rising faster than they should?
  2. Do you believe that healthcare spending is becoming a national crisis as well as a personal crisis for many Americans?
  3. Do you believe that real and comprehensive price transparency will have an impact on the price of healthcare services and our overall spending on healthcare?

If your answer to any of the questions above is "no," then please stop reading. I'm wasting your time.

If your answer to all three questions is "yes," then please read on.

Healthcare spending is rising at more than twice the rate of inflation and more than twice the rate of GDP growth. It's also rising at more than twice the rate of average wage growth. That means it's consuming more of our personal income, more of our corporate profits, and more of government budgets every year. So, as an investor, you decide if you are looking at things through the lens of an individual with healthcare bills, as a corporate manager, or simply as an American. Any way you slice it, there's a real return to be had on your investment.

When something is growing so much faster than inflation or GDP growth, we're entitled to see it grow slower than these measures, at least for a few years. And by most counts, about 30% of healthcare spending is wasted, so we have a lot of slower growth we're entitled to. If we succeed in passing this legislation, the competitive pressure will have a significant impact on the ability of healthcare providers to keep raising prices. As you contemplate your investment, I want you to just consider what it would mean if your healthcare bill grew 1% slower next year. Instead of growing at about 5%, what if it only grew 4%?

If you are an individual paying $800 a month in insurance premiums and have a $2,500 deductible, you're spending about $12,000 a year on healthcare. What's 1%? That's $120. Is this effort worth a $120 investment from you?

If you are a billion-dollar corporation spending $40 million a year on healthcare (the average company spends 7.5% of its operating budget on healthcare), and if your healthcare expense rises one percent slower next year, that's a $400,000 return on investment. How much are you willing to invest to realize a minimum $400,000 return? If you run a public company and your stock trades at a P/E of 10, that $400,000 equates to $4 million in market value.

If you have a 401K or are an investor, what would it mean to you if the stock market grew just 1% more than it otherwise would? Slowing the rate of growth of healthcare spending is bigger than any tax cut that's every been proposed. If we can take $1 trillion in wasteful spending out of our economy over the next ten years and redirect that money to a more productive use, what will that mean for our economy? What will it mean for you?

So, what does making a 1% investment mean to you? That's what I'd like you to think about when you visit the donation page. Just one percent!

If you are a company that would like to talk about a larger investment, please contact me directly. I'd be happy to talk more about how your money will be invested.

Thank you for your support!

David

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