Healthcare, like banking, needs buffers to survive a shock

This is an interesting perspective from a financial head. I need not necessarily agree about the “buffer system” because it would lead to huge overheads but pandemic crisis doesn’t hit every year.

However, do follow the link through (emphasis mine). While it is tempting to criticise the idea, a viable financial model needs to be worked out. This would be a fixed asset and population projections need to be adequate.

We are learning much the same about the inadequacy of buffers in the healthcare systems in many countries. The buffers may be expressed in terms of the number of spare intensive care beds, the stock of personal protective equipment for healthcare workers and — perhaps most significantly for this Covid-19 crisis — the stock of ventilators. Whichever measure you choose, it seems clear that for a world that is susceptible to a respiratory pandemic, the buffers in the system are inadequate.

The state cannot be assumed to bear the whole cost.

via Healthcare, like banking, needs buffers to survive a shock | Financial Times