Friday, July 27, 2007

Deal Lines Health Care Advisor's Pockets

A prominent health care economist pocketed millions yesterday from the sale of Triad Hospitals to Community Health Systems. Uwe Reinhardt, Ph.D. helped craft the national healthcare strategy over the years, even speaking at a 2003 symposium alongside Tom Scully, the head of the Center for Medicare/Medicaid.

As a board member for Triad, Uwe got over $2.3 million for his shares. Dr. Reinhardt serves on the board of several other healthcare companies, AmeriGroup and Boston Scientific. Could his ownership in a health insurance company and medical device maker impact the quality of his economic advice to the Bush team? His recent paper on making health savings accounts more attractive could help AmeriGroup sell more high deductible health plan policies. Funny, his bio on the Health Affairs website fails to mention his board directorships.

Now that Uwe is a richer man how did that Bush capital gains cut help him? It saved Uwe $115,000 in capital gains taxes. Is that why the poor elderly and disabled on Medicare and Medicaid had to pony up co-pays for their 10-12 monthly prescriptions?

Update 8-16-19:  After making millions from America's high administrative overhead healthcare system Reinhardt cited such costs as problematic in his final book.  Reinhardt died in November 2017.