[Vision2020] Borden and Universal Health Care Use the Same Business Model

[Donovan Arnold]

Jay,
I think it is
great that you were able to turn a failing business. Not many people have that
gift. I think your example does relate directly to health care, but in a way
that gives credence to Universal Health Care and highlights problems with our current
system of care.
What you did to the failing widgets company
is exactly what Universal Health Care does all over the world. Our health care
system is like a business that is going broke, with unsatisfied customers
because the way it is doing business. What kind of business lasts with 13%
increases in costs annually and just keeps passing the cost to the customers?
That didn't work for your predecessor, and it isn't working for health care
either. 
The steps you took, are the ones Universal
Health Care makes. First, you lowered costs of the widget so everyone that
needed one could afford it. Universal Health Care does it the same way. It is
the bulk of sales, not the high price per unit that makes it work financially,
as you well know. The Costco model works better than the local jewelry model
for high demand products and services. 
Second, you took steps to reduce costly replacements by
prevention through education. Universal Health Care also works on this business
model. By giving people the access to education on health and behavior and
proper use of medications and treatments, the cost of repairs are greatly
reduced because the damage never occurs in the first place. 
Finally, Universal Health Care works on the business
principles you adopted of a fair contract that holds both parties accountable.
Both you and Universal Health Care pay for about 100% of damage that is not the
fault of the client. However, if the person is neglectful or uses it not as
intended they are not completely covered, but you don't make the costs of
fixing the problem beyond their ability to pay. 
I really don't see the difference between
what you did with a widgets company and what Universal Health Care does for
health care. Jay, I don't see why the taxpayers should have to use the broken
business model you had to fix than the proper working one you have now. Do you? 
Donovan Arnold
 
 
 

________________________________
 From: Jay Borden <jborden at datawedge.com>
To: Moscow Cares <moscowcares at moscow.com>; keely emerinemix <kjajmix1 at msn.com> 
Cc: vision2020 at moscow.com 
Sent: Wednesday, January 18, 2012 4:30 PM
Subject: Re: [Vision2020] More Proof Preventative Health Care Saves
  

Yes, that’s the decision that the previous business owner made.    (Whose name didn’t sound anything like “Bay Jorden”).  
 
While he thought he was doing good, he was ruining his company (and thus his ability to continue servicing his customers with the product).
 
You can ridicule the specifics all you want, the only relevance that translates to my point is one of human nature.  I believe (and I have experienced the trend) that people care less when they are not directly tied to finances.
 
 
Is there anyone on this list that rents out residential property?  Would you say that people take more care of the apartment/house when a security deposit is on the line?  Or would you say that people generally take care of the facilities regardless?
 
 
 
Jay
 
From:Moscow Cares [mailto:moscowcares at moscow.com] 
Sent: Wednesday, January 18, 2012 1:26 PM
To: keely emerinemix
Cc: Jay Borden; vision2020 at moscow.com
Subject: Re: [Vision2020] More Proof Preventative Health Care Saves
 
According to Jay Borden:
 
"Turns out the problem had nothing to do with design… it was customers not bothering to read or learn anything about proper use of the widgets, or trying to use the widgets for a completely different purpose altogether. 
 
Tack on a free replacement guarantee, and customers didn’t bother to self-educate… they just let the company “fix the problem” with the warranty."
 
So, what you are telling us, Mr. Borden, is . . .
 
Although the customers clearly violated a product's warranty by " . . . trying to use the widgets for a completely different purpose altogether . . . ", the company honored the warranty and replaced the product.
 
That's right up there with . . .
 
John Smith was going into the widget business.  He would go to the widget manufacturer, load up his truck with widgets (at $10 each), take them back to his store, and sell them at $9 each.  This went on for a couple months.  He was wondering why he was losing money on what he considered to be a sound business venture.  He sought advice on what he should do from a business advisor; let's call him Bay Jorden.  Bay Jorden, after weeks of meticulous research into John Smith's business practices, came up with what he considered a sure-win solution.  He suggested to John Smith that what he needs is a . . . larger truck.
 
Sidebar to Mr. Borden:  Do you know if this guy is selling cars?  I have a friend that can certainly use a new car . . . every year.
 
Seeya later, Moscow.
 
Tom Hansen
Post Falls, Idaho
 
"If not us, who?
If not now, when?"
 
- Unknown

On Jan 18, 2012, at 12:57 PM, keely emerinemix <kjajmix1 at msn.com> wrote:
Turns out the problem had nothing to do with design… it was customers not bothering to read or learn anything about proper use of the widgets, or trying to use the widgets for a completely different purpose altogether.  
> 
>Tack on a free replacement guarantee, and customers didn’t bother to self-educate… they just let the company “fix the problem” with the warranty.
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