Occam’s Razor Applied to Canada’s Healthcare System

The following is the condensed version of a presentation made by Grant Roberts to the Legislative Assembly – Standing Committee on Health Care.

For those of you unfamiliar with the philosophical doctrine or precept Occam’s razor, also known as the law of economy, the principle of logic simply put suggests that all things being considered the simplest solution tends to be the right one. If the very foundation of a theory is too complicated the changes of creating and successfully managing the model are improbable. I emphasize the use of this axiom because of the urgent attention I believe this matter requires, and the importance of drawing a straight line to its solution.

The Problem

The physical condition of our population continues to contribute to the inevitable demise or collapse of the health care system. In a CTV/Globe and Mail poll demonstrated that 48% of our nation is considered in medical standards as obese.

The purpose of this paper is to recommend a simple fiscal measure that not only will significantly improve the overall physical fitness of Canadians but will also unilaterally create longevity to the health care system by reducing both usage and the overwhelming financial burden.

While it is undisputed that leading a healthy lifestyle that includes an appropriately designed, regular exercise regimen will have an overall positive influence, only a small percentage of Canadians participate in regular physical activity. As the owner of a few fitness centres in Western Canada I can tell you that personal economic situation remains a leading cause for people abstaining from activity. Fitness facilities generally offer memberships at very affordable rates, yet people unfortunately continue to view this service as a luxury instead of a necessity.

People simply do not place enough value on their own health and well being. This problem becomes two-fold as this attitude inevitably leads to premature and preventable illnesses, which ultimately puts unnecessary financial strain on an already weak Medicare system. Few would argue that it is difficult to perceive how any province or nation for that matter can continue to shoulder the burden of caring for a nation that does little to preserve itself on an individual basis. Practitioners themselves predict the collapse of health services in as little as ten to fifteen years. It seems clear that something must be done. The solution is simple.

The healthcare crisis remains a very active topic in the media with diametrically opposing opinions on solutions. A recent study prepared by Dalhousie university suggests, in deliberately vague terms, that offering rewards in the form of tax cuts may be in order for individuals following healthy lifestyles, while those who choose to put themselves at risk cannot benefit or are potentially penalized. The report contains nothing specific, but does strongly suggest that individuals disclose usage of their portion of the 68 billion-dollar health services system. Suggesting declaration should be manditorily reported via annual tax statements.

An opposing study of the Czech Republic prepared by tobacco giant Phillip Morris suggests solutions to the contrary. This company blindly suggests, and I paraphrase, that the indirect positive effects of early death due to tobacco consumption provide government saving on health care, pensions and welfare housing to the elderly; I think it is fair to assume that this particular solution will not meet favorably with the general populous. Nor would I suggest that one would want to be a part of a society that places little or no value on the elderly, one that suggests that premature death is good for the economy.

To demonstrate again the importance of simplicity, I continue to hear the proposal of yet another concept suggesting that fast foods should be taxed additionally making poor food choices less financially accessible as an incentive for people to eat more nutritiously.

It is easy to see the importance of implementing the principle of Occam’s razor, the answer could not be simpler.

The Answer

Once again relying on the elementary wisdom of simplicity, I submit that it is unanimously acknowledged that abstaining from smoking, eating nutritiously and participating in regular exercise is the key to living longer, healthier, productive and active lives. Yet of the triad, exercise remains the least supported and most neglected component in Canada at large. Governments do little to encourage the majority of the population to participate. It’s time that the federal and provincial governments pursue their mandate of reducing tax for persons who exercise on a regular basis in authorized establishments.

Reducing the social costs inherent in unhealthy lifestyles, promoting preventative measures and heightening the awareness of the benefits of fitness to the public at large is only economically feasible if supported by substantial savings or an incentive to participate. Simply put, talk is cheap and the sedentary majority of our citizens dominate public opinion. Participation will only be accomplished by financial incentive making access to qualified fitness facilities and professionals affordable for all. Doctors are prescribing exercise, but frankly doctors are not trained nor qualified to design personal fitness programs. The best health insurance possible is simply exercise and the prescription is best left to fitness professionals available at qualified fitness centers.

The tax incentive I am proposing is limited to 50% of the amount paid by each participant enrolling in a sanctioned facility to a maximum of $250.00 whichever is less.

So, how does giving money away preserve the health care system?

Conclusively studies show that exercise reduces the incidence of leading illnesses such as heart disease, obesity, diabetes, high blood pressure, osteoporosis colon cancer and even depression.

Earlier I alluded to the CTV/ Globe and Mail poll describing our nation as 48% obese. While obesity and diabetes have risen to epidemic proportions, let us just take into account the effect of a single affliction of heart disease alone.

The Conference Board of Canada reports that by increasing our nation’s physical activity by just one percent, the savings tied to the decline in heart disease alone would result in more than enough dollars to cover the costs of the proposed tax rebate.

According to their research, both the direct and indirect savings parlay into a total savings of $386.46 for each Canadian who becomes physically active. Keep in mind that this example focuses solely on the positive return of reducing heart disease alone and based on a tax credit in the amount of the maximum of $250.00. The overall savings are nothing short of astounding when one considers the impact that regular exercise can have on reducing the occurrence of obesity, diabetes, high blood pressure, osteoporosis, colon cancer and depression.

Not only does this provide a financial advantage for government, but such an initiative could further prompt insurance companies to introduce preferential rates for life insurance policies of those people who qualify for the tax credits.

There can be no doubt that reducing health care costs for Canadians while increasing the percentage of the active population would follow other major economic gains. The impact of such a scenario would be felt on productivity and competitiveness in our industries as well.

For this reason I would further suggest that government provide additional incentives for companies of all sizes to provide additional fitness benefits to employees. Studies clearly support the benefits to companies who develop healthier work forces. Employees who exercise have a healthier state of mind, are more likely to exhibit above average work performance, have fewer sick days and are less likely to leave the corporation. Major corporations globally are seeing the benefits with more than one out of four fortune 500 companies active in corporate fitness programs.

A study released by General Electric US shows that after one year period, companies whose employees participated in a fitness program reduced their medical expenses by an average of 38% or $647.00 US.

The government would recoup the costs of this program two fold- through further economics in the health sector, and the collection of taxes on improved corporate profits resulting from increased productivity.

In conclusion, it’s clear that the most valuable asset to any corporation is its employees. Similarly, the most valuable asset to a nation is its people. Throughout my career, I have preached the benefits of fitness on numerous continents and all of this experience has convinced me one thing- the first step to a healthier individual and ultimately a healthier nation is simply EXERCISE!

Plato himself, one of the greatest philosophers, describes his perfect society or ideal man as one whose foundation is built firmly on knowledge and athletics. Exercise is the precursor to the education required for the enlightened individual. People naturally pursue greater knowledge through the simple task of exercise. To enhance personal results, they investigate nutrition and make better food choices. Finally positive lifestyle changes become a priority and confidence is found. An education or knowledge of one’s self is the ultimate accomplishment. What more valuable commodity than our own health do we have?