Gino DiCaro

PRI study on government healthcare monopoly bill

By Gino DiCaro, VP, Communications

Capitol Update, June 30, 2006

This week the Pacific Research Institute (PRI) released a report addressing the impact of government intervention in the California healthcare system as proposed in SB 840 (Sheila Kuehl, D-Santa Monica).  "Deadly Solution: SB 840 and the Government Takeover of CA Health Care " was released as part of PRI's Healthy California research series.  According to the report, SB 840 "imposes a Canadian-like government healthcare monopoly in California." The bill was passed by the State Senate in 2005 and is awaiting further debate in the Assembly.  

PRI finds that if SB 840 becomes law and the government determines the quantity and quality of health services that Californians receive, a number of negative consequences would follow:

  • Californians will pay much too great a price to realize the small monetary benefits of SB 840 - about 4 percent of current health spending.  
  • The number of physicians will decrease by about 23,000, dropping from approximately 94,000 to 71,000.  
  • Waiting times for medical treatment will increase.
  • Availability of medical technology will decline.  
  • Elderly stays in hospitals will lengthen from about four or five days (depending on the procedure) to 14 days.  
  • Middle-aged women receiving mammograms at least once every two or three years will drop by about 330,000 in 2010, and continue to fall in the following years.

CMTA does not have a position on SB 840.  

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