How to Save American Business

The fact is, every other health-care-related problem will grow worse unless we address the issue of rising costs. That means getting health care providers to think more like business owners. As you know from your own experience in business, most companies wouldn't last very long in a competitive market if we didn't keep our overhead in check and control our price increases. But because health care is a seller's market and the customers have nowhere else to go, the health care providers can pass their costs along -- and they do.

There are two steps you can take as President to hold down health care cost increases, and neither one of them involves new legislation or regulation. First, you can use your position to foster better understanding of why costs keep rising, to show the terrible impact that this is having, and to focus public attention on the need to make changes. Then you can ask health care providers to take the initiative by agreeing voluntarily to restrain their costs as other businesses do. Challenge them to keep their own price increases within the overall level of inflation. Start a national campaign around it. Single out for praise the providers that accept the challenge and hold the line. Let the industry know that, if they help you handle this problem, you'll be able to help them in other areas.

The second step is to encourage hospitals and clinics to put small-business owners on their boards. Very few hospitals do that now. Although their boards have really good people, the members often have no connection to the marketplace. It's an inbred system. That's why I agreed to sit on the board of the local hospital that provides health care for SRC employees. I wanted to make sure they were represented. The other board members pay attention if I present my case forcefully, and I can be enough of a pain that they make sure they have their ducks in a row before bringing up any new spending increase.