Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, April 23, 1993 TAG: 9304230207
SECTION: BUSINESS PAGE: A9 EDITION: METRO
SOURCE: Associated Press
DATELINE: TORONTO LENGTH: Medium
Toronto Hospital, the largest acute-care facility in Canada, and the Hospital for Sick Children, one of the best pediatric centers in the country, will begin marketing their services south of the border in the next few months.
Dozens of other institutions may follow.
The plan's proponents say it will bring badly needed millions into hospitals chronically short of funds. Critics think it will mean poorer service for Canadians in favor of rich Americans.
"I would not accept in this hospital a system that was going to disadvantage a Canadian," said Dr. Alan Hudson, president of Toronto Hospital and leading proponent of the plan.
"Our first and foremost commitment is to Canadian patients," echoed Michael Strofolino, executive vice president of the Hospital for Sick Children.
The Ontario government, for the moment, seems to be sitting on the fence, though Health Minister Ruth Grier says she does not support aggressive marketing of services outside the province.
Nonetheless, the province has looked at the issue. A government study shows Ontario hospitals could make more than $80 million U.S. and create 645 jobs by serving Americans.
Hudson's explanation of the plan is simple.
All Ontario hospitals have excess capacity, beds closed due to funding cutbacks. By bringing in patients and money from outside, hospitals will be able to open more beds, rehire staff and, as a result, shorten waiting lists for Canadians.
For sale will be such high-tech services as bone-marrow transplants at $80,000 each, brain tumor surgery, head and neck surgery and complicated cataract surgery.
"If I do a brain tumor here, the fee for the service is about $1,200 Canadian - that's less than $1,000 U.S.," said Hudson, a neurosurgeon. "Now you phone a surgeon in New York City and ask what he's charging. A lot of them are charging $5,000 to $6,000. And that's just the doctor, not the hospital.
"There are things we do very well in this country. One of them is health. Our administrative costs are so much better than in the United States that we are much more competitive," he said.
The Canadian hospitals will try to sell services to the insurance companies, preferred-provider organizations and health-maintenance organizations. A salesman hired by the two hospitals will hit the road in a couple of months.
Dr. Philip Berger, a family practitioner who led a fight last year against higher doctors' fees, says hospitals should not be allowed to use public funds to generate profits. "And I don't believe them when they say access for Canadians will be unaffected," he said.
The new provincial budget, to be made public today, is expected to contain deep cuts in the health-care program, the single largest budget item, and hospitals will be squeezed once again.
by CNB