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

Craine Kit kcraine at frontier.com
Thu Jan 19 09:37:30 PST 2012


Bravo Donovan. 

Add in savings from eliminating all the mid-level managers who do nothing but shuffle unnecessary paper (I.e. insurance company drones) and the system would be reasonably efficient 

Kit Craine

On Jan 19, 2012, at 7:29 AM, Donovan Arnold <donovanjarnold2005 at yahoo.com> wrote:

> 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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