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Privatization

After Platinum Health Took Control, All Hospital Workers Were Fired

The news, under Noble Health letterhead, arrived at 5:05 p.m. on a Friday, with the subject line: “Urgent Notice.” Audrain Community Hospital, Paul Huemann’s workplace of 32 years, was letting workers go. Word travels fast in a small town. Huemann’s wife, Kym, first heard the bad news in the car when a friend who’d gotten the letter, too, texted. “Your termination was not foreseeable,” said the letter, dated Sept. 8 and signed Platinum Health Systems, adding that the firing was permanent “with no recourse” and that the “medical facility will be shuttered.” “I don’t know what my next steps are,” said 52-year-old Huemann, who supervised the laboratory at the Audrain hospital. The future for the Huemanns, hundreds of other workers, and thousands of patients in two small Missouri towns began to unravel long before that afternoon.

Puerto Rico: A Microcosm For The Worst Kind Of Capitalist Ideas

Puerto Rico is in dire need of fuel for generators as they deal with the devastation of Hurricane Fiona. But a ship carrying fuel has been idling offshore, unable to enter a port, because it’s Puerto Rico, where the Jones Act—requiring that all goods be brought in on a US-built ship, owned and crewed by US citizens, and flying the US flag—makes critical goods more expensive, or in this case, out of reach. (The White House has just announced it will temporarily waive the Jones Act.) Investment firms in mainland states can’t act as advisors to the government in the issue of bonds while at the same time marketing those bonds to investors—but they can in Puerto Rico. In Puerto Rico, you can get tax breaks, including zero income tax on capital gains—unless, that is, you were born on the island. Only non–Puerto Ricans qualify. Puerto Ricans themselves are ineligible for Supplemental Security Income, even though they pay payroll taxes.

Modeling The New USPS Delivery Network

This month the Postal Service will begin implementing a massive initiative to change how the mail is delivered. Instead of working out of the back of post offices, letter carriers will be relocated to large, centralized facilities called Sorting & Delivery Centers. These S&DCs will be housed in currently operating processing centers, large post offices, and eventually one of the new multi-functional mega-plants the Postal Service plans to create over the next few years. Spaces are already being prepared in Atlanta, Indianapolis, and Charlotte, where the Postal Service has leased a 620,000 square foot facility almost adjacent to a large Amazon warehouse. The effects on postal employees will be significant, as discussed in this previous post.

Stop The Uberisation Of Royal Mail

This morning, the Communication Workers Union (CWU) leadership met with Royal Mail Group’s senior management. We hoped this meeting would begin resolving the ongoing industrial strife that has seen hundreds of thousands of employees take strike action against degrading real-terms pay cuts and the deterioration of workplace conditions. However, they had other ideas. While we waited, managers began being briefed across the country about new plans for the ‘modernisation’ of the company. One of the company’s CEOs, Simon Thompson, handed us two letters.

Detroiters Say ‘Hell No!’ To DTE’s Proposed Electricity Rate Hike

Detroit, Michigan - Recurring power outages have become a fact of life in Detroit and Southeast Michigan. The most recent mass outage left hundreds of thousands in Metro Detroit without power following a brief windstorm on August 29th. Four days on, tens of thousands were still unable to run their medical devices and prevent their food from spoiling. With outages becoming more severe and more frequent as the climate crisis worsens, profit-driven utilities want to take more out of the pockets of working people struggling to afford their unreliable energy service. Even before the most recent outages, the frustration in Detroit and surrounding areas was palpable. On Monday, August 22, hundreds demonstrated and turned out to a public hearing held by the Michigan Public Service Commission (MPSC) to denounce DTE’s latest exorbitant electricity rate hike amid soaring inflation and perennial outages.

Protest Demands Biden Administration Terminate Medicare Privatization

Seattle, Washington - Approximately 75 spirited protesters celebrated the 57th anniversary of the enactment of Medicare here on Friday, July 29, with a picket line and rally outside the Columbia Center chanting, “Whose Medicare? Our Medicare!” and “Medicare is not for profit! Keep your corporate hands off it!” The Columbia Center is where the Northwest Regional Director of the Department of Health and Human Services (HHS), Ingrid Ulrey, has offices, along with other staff of HHS, including the Division Director of the Center for Medicare Services (CMS). The protesters demanded that President Joe Biden and Congress terminate ACO REACH, which stands for Accountable Care Organization Realizing Equity, Access, and Community Health. It’s an impressive sounding name, but it amounts to letting a profit-seeking third party like an insurance company or private equity-backed firm step in and get paid by Medicare to manage the care patients receive.

US Labor Fights Back Against Amazon’s Expansion Into Healthcare

On July 21, Amazon announced that the corporation would buy One Medical, a national chain of healthcare clinics and services based in San Francisco, for $3.9 million. In response, unions and labor organizations marched in San Francisco’s Financial District against the deal on July 26. The march was attended by the newly-formed Amazon Labor Union (ALU), with ALU president Chris Smalls leading chants at the helm of the protest, as well as the California Labor Federation, San Francisco Labor Council, ALU, California Nurses Association, Teamsters Local 665, and Service Employees International Union-United Healthcare Workers West (SEIU-UHW). “We think health care is high on the list of experiences that need reinvention,” said Neil Lindsay, SVP of Amazon Health Services, in a July 21 statement.

The Sickness Of Our Healthcare System Is Rooted In American Exceptionalism

July 30 will be the 57th anniversary of the passage of Medicare, widely celebrated as Medicare's birthday. People are taking action across the country this week in support of a National Improved Medicare for All single payer healthcare system culminating in a national march and rally in Washington, DC on Saturday (find info at M4M4All.org). Clearing the FOG speaks with Dr. Ana Malinow, a leader of the group National Single Payer, about the growing privatization and corporatization of the US healthcare system and how people are organizing to fight back and win a system in which everyone in the US will have the care they need without fear of financial ruin. She also discusses how American Exceptionalism is an obstacle to changing the system.

Amazon Joins The Medicare Privatization Spree

Amazon, the $1.25 trillion company founded and led by Washington Post owner Jeff Bezos, has announced that it is acquiring One Medical, a private equity-backed primary care provider that generates over half of its revenue from Medicare. While Amazon’s profits from its core consumer retail business are dwindling, in part because of heightened competition from brick-and-mortar retailers that were shut down at the beginning of the COVID-19 pandemic, the corporation’s cloud computing division, Amazon Web Services, continues to enjoy robust profits thanks in part to generous government contracts. Now Amazon could be attempting to build on that federal largesse by seeking to milk revenue from Medicare, the national health insurance program for seniors and people with disabilities.

‘Value-Based Care’ Is A Pretext For Privatization

Later this month, right before Medicare’s 57th birthday on July 30, corporate health care and the government players who facilitate their lucrative businesses, will gather for a summit on value-based care.   They will speak of driving health equity, of reaching underserved communities, of coordination of care, and accountable care.  They will insist that physicians share in risk just like insurance companies.  They will advocate the transformation of health care to value-based care, supposedly founded on payment for quality rather than quantity, value instead of volume, and outcomes not fee-for-service.  They will assert that this transformation brings equity, improves care, and saves money. They have no evidence to back up their assertions. 

Puerto Rico: Major Protest Over Energy Privatization

Hundreds of people marched on Wednesday in Puerto Rico's capital San Juan to demand that the island's government cancel its contract with power grid operator LUMA Energy over chronic power outages and frequent rate hikes. Demonstrators including union leaders and community activists say LUMA has steadily increased power rates despite frequent outages including one in April that left more than one- third of the island in darkness. read more Protestors shouted slogans including "There goes LUMA, there goes LUMA with another increase" and "LUMA, a bunch of morons who burn substations." Power rates have gone up five times since LUMA began operating Puerto Rico's transmission and distribution system on June 1, 2020. The last rate hike, which took effect at the start of July, pushed rates up by 17.1%.

Privatizing Medicare

Capping five decades of battle by the labor movement for federal healthcare for elders, Medicare was signed into law in 1965 by President Lyndon Johnson. Funded by payroll taxes under Social Security, the new program provided comprehensive, low-cost care for retirees and the disabled. Medicare was part of the largest government domestic expansion since the depression-era New Deal. Shaken by civil rights protests, labor strikes and student anti-Vietnam war demonstrations, politicians responded with some valuable reforms. Medicare joined the Civil Rights and Voting Rights Acts, federal aid for education and housing, Head Start programs and food stamp allotments as victories of the Civil Rights era. Medicare proved wildly popular. Most of organized labor and virtually all organizations of seniors supported it. Adults no longer faced bankruptcy paying for medical care.

A Veterans Health Commission Dies An Early Death

When Joe Biden ran for president in 2020, he marketed himself as a pragmatist, eager to collaborate with Republicans and capable of bridging divides because of his long experience in the Senate and as vice president. Despite this résumé, in late June Biden was rebuked by Senate colleagues on both sides of the aisle. They came together, unexpectedly, to block his nominations to a presidential commission that no one at the White House or the Department of Veterans Affairs (VA) thought would be that controversial.

NYC Teachers Criticize Massive School Budget Cuts

At the end of the school year, Annie Tan, a special education elementary school teacher in Sunset Park in Brooklyn, New York, said teachers typically have a party. This year, however, that celebration was mired by the loss of 16 teachers from her school who are being excessed (ie, moved to different schools and positions) as a result of massive public education budget cuts that are being enacted by the New York City Board of Education and Mayor Eric Adams’ administration.  The loss of those teachers, and the resulting vacancies that will remain unfilled, means that Tan’s students will continue to not have an art program, and dual-language programs will be limited for students who are still learning English. 

Senate Urged To Block Biden’s Pro-Privatization Nominee For Social Security Board

Defenders of Social Security on Tuesday urged the U.S. Senate to block President Joe Biden's little-noticed nomination of Andrew Biggs—an American Enterprise Institute senior fellow with a history of supporting Social Security privatization—to serve on the independent and bipartisan Social Security Advisory Board. Social Security Works, a progressive advocacy group, is leading the charge against Biggs, highlighting his role in the George W. Bush administration's failed attempt to privatize the New Deal program in 2005.
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