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3
Second Quarter 2010
f r o m t h e p r e s i d e n t
As we go to press, it is
still unclear whether
a major health care
reform bill will be en-
acted this year. What-
ever the outcome, the
debate has put the
focus squarely on
cost control ­ but un-
fortunately, without
enough emphasis on
the ways to address this issue head on.
At the Milken Institute, we think it's im-
portant to take a more holistic look at what
"health care" really means. While ensuring ev-
eryone access to decent care has to be a key
goal, reform must encompass more than just
deciding who pays for treatment. Costs won't
stop skyrocketing until we put more empha-
sis on accelerating medical research that
promises to reduce morbidity and on altering
the lifestyle choices that put millions of
Americans at risk of chronic disease relatively
early in life.
The current model for drug development
is simply unsustainable: The process takes too
long, costs too much and discourages invest-
ment. Just when breakthroughs seem to be
within our grasp, financing for early-stage
biomedical research has fallen off a cliff. We
have to find ways to jump-start medical inno-
vation by designing more efficient ways to
raise capital and manage risk, by helping
donors target philanthropy more effectively,
and by making sure that FDA oversight pro-
cedures keep pace with rapid advances in sci-
entific discovery. The payoff, both in terms of
breakthrough treatments and cost saving
would be immense.
In late 2007, the Institute issued a ground-
breaking report, "An Unhealthy America,"
which made headlines around the nation. We
calculated that preventable chronic diseases
cost the U.S. economy a staggering $1 trillion
in medical treatments and lost productivity
alone. The cost to America's GDP will hit $6
trillion annually by mid-century if we don't
take decisive action.
Getting serious about prevention will re-
quire a sea change in attitude. Convincing
Americans to eat healthier and exercise regu-
larly ­ not to mention cut down on drinking
and smoking ­ will be no easy task. But if we
don't make a serious attempt to address the
root causes of the obesity epidemic, all the in-
surance reform in the world won't contain
the spiraling costs of diabetes, heart disease
and cancer. Government officials, health care
professionals, employers and educators alike
have important roles to play in this monu-
mental effort.
The twin strategies of prevention and cure
not only contain costs, but also boost produc-
tivity, and improve the quality and length of
life. And, best of all, the power to effect this
sweeping change is within our grasp.
Our chairman, Mike Milken, has been
working for years to highlight these issues
and to mobilize action. We invite you to take
a look at our research and our call to action
by visiting http://www.milkeninstitute.org/
healthreform/.
Michael Klowden, President and CEO