Healthcare Reform....Buffett Style

As the debate around healthcare reform heats up there a so many different options around a better healthcare system. The ideal situation would include decreasing costs (bending the cost curve), improving access to healthcare by providing insurance to the over 46 million uninsured, redefining quality and value, improving reimbursement for preventive care, and most of all changing the behavior of the American people! How do we please all the stakeholders; patients and family members, providers, payers, employers, pharmaceuticals, and so many others?

Well, I figured that since healthcare reform involves finances and amazing intelligence, the only person in this enormous world that would have the answer would be Mr. Warren Buffett himself. The American Capitalist, the genius of investing, one of the greatest minds of this century!

So, on April 17th I had the opportunity of spending a day with Mr Buffett in his home town of Omaha, NE. As a part of my MBA education I was one of 20 or so that was able to meet with him, spend time in his Nebraska Furniture Mart, eat lunch with him, and sit down with him for a couple of hours to ask him questions about investing, life, business, finances, AND healthcare. I was the first lucky soul from our program to ask him a question.

My question was phrased as follows; "Mr. Buffett, considering that our nation is currently spending near 17% of our GDP on healthcare and having a large baby-boomer population that will soon need increased resources and financing from the system.....how do you feel we can prepare now to support these changes and who should be responsible for the funding of the system?"

This was Mr. Buffett's reply, "Well (long pause).....would you allow me to phone a friend on this one? (laughs all around)" Obviously showing that even he, the genius of geniuses, doesn't have the answer. He then stated, "Even though we need a big change, most constituents are fairly happy with how things are, so they don't want to make a major overhaul. Basic healthcare for everyone is needed, and yet we may need to ration certain levels of care; that is done financially." Last, but certainly not least he mentions something very telling, "In reality, I don't have the answer to that question. Ask me an easy question like, 'What will the stock markets do in the short-term?'"

The morals/lessons/take-aways of this story:

1. Mr. Buffett thinks that knowing what stock markets will do is a simple task compared to how do we change and finance the future of healthcare. This is not a simple task at hand.


2. Mr. Buffett believes that most constituents are "fairly happy with how things are". However, I can speak for hundreds and probably even thousands of healthcare stakeholders that we are not happy about it.


3. We must improve the system and we can't just continue status quo. We need disruptive change, not incremental and we'll all have to take responsibility....individually and together.

I have to say that in general our healthcare system is doing wonderful things. I get to witness on a daily basis the things that are being done to improve the lives of individuals. Miracles do exist, I know it (more on that in another post), BUT we have to be willing to change.

PS I still respect Mr. Warren Buffett and think he is an absolute Einstein!