Health & Capital

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Health and Capital is the inaugural publication of Sector & Sovereign, LLC the parent of Sector & Sovereign Research, LLC and is in keeping with the firm’s focus on industries and asset classes that are heavily influenced by government policy.

The American health system is a conflict of ideological extremes: free markets v. central planning and individual v. collective responsibility are prominent examples. These extremes fail in health care for moral and mechanical reasons: patients cannot time or scale their needs to an ability to pay, requisite conditions for market efficiency are missing, and planners cannot match the system’s pace and complexity.

Health and Capital begins as an empiric review of the present health system’s moral and economic costs, the scale and accelerating growth of which are linked to their structural origins. The tendency of both free and planned markets to fail in health settings is shown through examples; as, more constructively, is the existence of a continuum of workable alternatives bounded by these extremes. Recommendations are provided in two forms: loosely, as a list of essential reforms that logically must feature in any health system having moral and economic efficiency, whatever it’s broader structure and finer details; and more completely, as a comprehensive health system design that demonstrates the feasibility of effective reforms.