CCO Lawsuit

Posted on December 3, 2012 by


Pardon me while I giggle, but after a mere three months in operation, the first cracks in the governor’s vaunted CCOs are showing. You know, CCOs–coordinated care organizations, which, according to HB3650, are designed to bring universal health care to Oregonians. (See Section 1, Paragraph 1, HB 3650.)

Yes indeed, court records show that on November 5th, Salem Hospital sued the newly formed Marion-Polk CCO, which officially launched on August 1, 2012. A mere three months after being in operation–and since those things take time to put together, it was probably only 2-1/2 months when things started to fall apart.

Take a listen: I Spy Minute for Monday December 3, 2012. Or read the transcript, below:

Follow I Spy on Twitter: @ispyradioshow and #iSpyMin

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One of the problems with school curriculum is they don’t teach the classics any more.

Oh, I’m not talking Shakespeare. I’m talking classics like Friedrich Hayek in economics.

Hayek said bureaucrats with calculators attempting to set prices will never work because the knowledge underlying prices is the sum of countless perceptions of all of the people in the market.

If schools did teach the classics, we wouldn’t have things like CCOs—coordinated care organizations.

The CCOs are doomed to fail because they remove free-market principles from health care.

And right on cue, the Salem Hospital is suing the Marion-Polk County CCO—after only three months of operation. Apparently, they were offered four pricing options, all of which would have made them lose money.

So rather than trust that the market had already determined the lowest price, some bureaucrat assumed they could do better simply by decree.

Forget the classics; all the centralized planners in the governor’s office had to do was to look at the failure of the Soviet Union. Proving once again that those who forget history are not only doomed to repeat it but apparently price themselves out of the market.