Birth of the Health Maintenance Organization

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Birth of the Health Maintenance Organization
Richard Nixon taped a 1971 Oval Office conversation in which John Ehrlichman explains the HMO concept of squeezing patients for profit. Nixon expresses assent for the idea, which eventually led to the HMO act of 1973.

Sep 11, 2009 1:03 AM
Re: Nixon HMOs
Ehrlichman: “On the … on the health business …”

Nixon: “Yeah.”

Ehrlichman: “… we have now narrowed down the vice president’s problems on this thing to one issue and that is whether we should include these health maintenance organizations like Edgar Kaiser’s Permanente thing. The vice president just cannot see it. We tried 15 ways from Friday to explain it to him and then help him to understand it. He finally says, ‘Well, I don’t think they’ll work, but if the President thinks it’s a good idea, I’ll support him a hundred percent.’”

Nixon: “Well, what’s … what’s the judgment?”

Ehrlichman: “Well, everybody else’s judgment very strongly is that we go with it.”
President Nixon: “All right.”

Ehrlichman: “And, uh, uh, he’s the one holdout that we have in the whole office.”

Nixon: “Say that I … I … I’d tell him I have doubts about it, but I think that it’s, uh, now let me ask you, now you give me your judgment. You know I’m not to keen on any of these damn medical programs.”

Ehrlichman: “This, uh, let me, let me tell you how I am …”

Nixon: [Unclear.]

Ehrlichman: “This … this is a …”

Nixon: “I don’t [unclear] …”

Ehrlichman: “… private enterprise one.”

Nixon: “Well, that appeals to me.”

Ehrlichman: “Edgar Kaiser is running his Permanente deal for profit. And the reason that he can … the reason he can do it … I had Edgar Kaiser come in … talk to me about this and I went into it in some depth. All the incentives are toward less medical care, because …”

Nixon: [Unclear.]

Ehrlichman: “… the less care they give them, the more money they make.”

Nixon: “Fine.” [Unclear.]

Ehrlichman: [Unclear] “… and the incentives run the right way.”

Nixon: “Not bad.”

[Source: University of Virginia Check - February 17, 1971, 5:26 pm - 5:53 pm, Oval Office Conversation 450-23. Look for: tape rmn_e450c.]
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Re: The birth of the Health Maintenance Organization
So this is what "we're" righting to protect?
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Re: The birth of the Health Maintenance Organization
should have known that something like this would have come from them
By: Raikou
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