The Daily News FRIDAY, MARCH 8, 1935. HEALTH INSURANCE.

Taranaki Daily News, 8 March 1935, Page 4

The Daily News

FRIDAY, MARCH 8, 1935. HEALTH INSURANCE.

OFFICES: NEW PLYMOUTH. Currie Street. STRATFORD, Broadway. HAWERA. High Street.

It is not surprising that such a subject aS national health insurance should receive full discussion at a conference of Hospital Boards. For them sound finance is a very important responsibility. Demands for expenditure upon accommodation, staff and equipment increase in all the more important centres, and as the value of specialisation is better recognised by the public such demands are likely to increase. The present system of hospital finance is working fairly well, though from time to time complaints are made, not entirely without justification, that the ratepayers in rural areas bear a heavier burden in ratio to hospital benefits received than those in urban districts. Two weaknesses undoubtedly exist. Hospital board members are sometimes inclined to sanction expenditure or relinquish just demands for payment for services rendered lest another attitude should have its effect upon their chances of re-election. It is a weakness by no means confined to hospital boards, and is part of the price payable for the large amount of local administration left to elected voluntary authorities. A graver weakness in hospital finance is the apparent impossibility of impressing upon a certain class of patient his or her responsibility towards the community. Every hospital board in the Dominion knows that apart from cases of real poverty there are many patients who could, if they would make the effort, pay at least a portion of the cost of their care and treatment in hospital. _ Another troublesome difficulty is in deciding whether certain patients ought or ought not to be admitted to a. public hospital when apparently in a position to seek attention from private practitioners and nursing establishments. These are but a few of the problems of hospital finance, and it is little wonder that the authorities concerned support a national compulsory health insurance plan that will ensure universal payment for hospital services. The various friendly societies have shown the splendid results obtainable from united effort and small but regular payments to provide for medical attention when, need arises. Were the plan universal the cost per head would be less and the scope of benefits made available could be increased considerably. There is nothing new in such a plan. Compulsory insurance against sickness is in operation in a dozen countries to-day. In Germany the system was established 52 years ago, Austria followed in the year 1888, and France in 1894. Great Britain established the system in 1911, and after nearly .20 years experience of its operation a Royal Commission found wholly in favour of its continuance. Insurance had, it was found, improved public health and social security, educated the public in health matters, and thus reduced sickness, saved considerable national loss through speedier recoveries, and less interruption of employment, and co-ordinated the work of private practitioners and health and hospital authorities. Every one of those results would be viewed with favour in New Zealand, and particularly by hospital authorities. They have prepared an exhaustive report on the subject, and it is satisfactory to note that the scheme is to be submitted for actuarial investigation and for Ministerial consideration. Most people will agree with the principle of universal health insurance, but the cost of such a scheme is the first question requiring an answer, and upon that reply will depend the feasibility of the proposal. The Dominion has a small population and the standard of public services—including hospitals—has been set very high. The cost is at present borne by the community by taxation direct or indirect. An insurance scheme would increase the proportion of direct taxation and indicate more clearly to taxpayers the cost of health services to the individual. This should have a healthy effect upon a public too prone to lean upon’authority, and would ensure that those who demand extensions of health and hospital services would know that they must pay their share of the cost. It is to be hoped the Government will treat the matter seriously, and the result of the. actuarial inquiry will be awaited with considerable interest.