There had been a spate
of articles in US business journals
extolling the opportunities for corporate profit in health care
foreign countries. The tone of phrase and patterns of thought
revealed gave a dramatic insight into the way corporations thought
about health care. The US dominated and financed Singapore company
Healthcare featured prominently in
the articles. I drew these matters to FIRB's attention and attached
17 November 1997
Mr A Hinton
Foreign Investment and Review Board (FIRB)
The Treasury Building
Parkes Place Your fax 06 263 2940
Dear Mr Hinton, - - - - - - - - - URGENT
US health care corporations are leaving the sinking ship
I write to update you on the wave of revulsion and anger which engulfs the USA as the FBI's operation "Restore Trust" becomes more and more effective and extends to embrace other corporations. The exposure of the sad practices of managed care companies, which are becoming common experiences in the community. The public's revulsion is now becoming a serious threat to managed care companies.
As a consequence the financial prospects for those corporate providers, who are aware that their practices will be targeted and publicly exposed has become very gloomy. It is no coincidence that articles appearing in health care business journals are concentrating on opportunities in foreign countries. There is even an article on Australia. You should be warned that those corporations which make application to you are very likely to be the subject of future investigations.
International business consultants like Vista Healthcare which is staffed by all our old friends from NME and has a relationship with Tenet are doing a great business offering advice.
It is therefore very likely that Sun Healthcare and Columbia/HCA will not be the only US companies coming to your committee and to our politicians spouting the sort of corporate nonsense revealed in the enclosed material. It is almost certain that Ford and Vista Healthcare will be giving advice based on their past experience with our inadequately controlled system. I sincerely trust that even our present minister for health will not entertain Tenet/NME's presence.