How The United Kingdom's Health-Care System Works - YouTube

Channel: CNBC

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Super Tuesday came and went and the Democratic presidential race is narrowing to two very
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different candidates, far left Bernie Sanders and the more moderate Joe Biden.
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Biden and Sanders have clashed on the best approach to reforming U.S. health care.
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Sanders wants to get rid of private insurance altogether.
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While Biden proposes building on the framework left over from Barack Obama's Affordable Care Act.
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Bernie says that you have to bring people together and we have to have Medicare for all.
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But Bernie says and he says he wrote the damn thing, but he's unwilling to sell with the
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damn thing's gonna cost.
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The idea middle class taxes aren't going to go up is just crazy.
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What Medicare, after all, will do is save the average American substantial sums of money.
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The U.S. already spends more money on health care than any other developed country.
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There's one country that spends less than half what the U.S. does on health care.
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And people generally don't pay anything out of pocket when they go to the doctor.
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The United Kingdom and out of all the health care systems we've looked at, the U.K. appears
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the most socialist.
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The government effectively runs the whole thing.
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Right now, the U.K. is having its own debate over how to reform the National Health Service.
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So how does the U.K. system compare to the U.S. and what reforms may be coming?
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In 2018, the United States spent around ten thousand five hundred U.S. dollars on health
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care for each of its residents.
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The United Kingdom spent around 4000 U.S. dollars.
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That means the United Kingdom spends 9.8 percent of its GDP on health care, while the U.S.
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spends 16.9 percent.
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Despite spending less, the United Kingdom manages to have healthier citizens who live
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longer and are less likely to die in childbirth.
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In 2017, life expectancy in the U.K. was 2.7 years higher than in the U.S., and the U.K.
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has roughly 1.5 times fewer deaths that could have been avoided by access to better health care.
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The infant mortality rate is lower in the United Kingdom, with 3.9 deaths
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per 1000 live births as opposed to 5.8 in the United States.
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And the maternal mortality rate in the U.S. is nearly 1.5 times higher than in the United
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Kingdom.
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So how is the U.K. system structured so that it gets these results while spending significantly
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less than the United States system?
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The National Health Service is a case where the British decided right after World War
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2 that health care should be government's job, like paving the streets, putting out
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fires, running a library, running the parks.
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That's T.R. Reid, author of the book The Healing of America.
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He traveled the world exploring different countries' health care systems.
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It's a service you get when you need it and you never get a bill.
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It's like going to the library.
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They don't charge you to check out a book.
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He's saying that the NHS is it's a risk sharing system, so everyone pays into it through their tax.
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If you need to use it, you don't have to pay anything else.
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So in a sense, it's not free because is paid as of taxation.
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Dr. John Puntis is a pediatrician who recently retired from the NHS.
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He is also co-chair of an organization called Keep Our NHS Public.
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All of his comments are reflective of the organization and not his personal views.
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It's a fair system in that the more money you earn, the more tax you pay, the more you
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contribute.
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But there has been discussion about whether tax should be increased to pay for sorting
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the NHS out in terms of the current deficiencies and problems, and that that is controversial.
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I think a lot of people favor some tax increase, but then there are other people who say, well,
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maybe the focus should be on companies that don't pay tax and people who don't pay tax
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as the first step.
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I would call that socialized medicine.
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Government provides that care.
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Government pays for the care it's paid for through taxes.
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Everybody's covered the same.
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To me that sounds like socialized medicine.
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The term socialized medicine has become a political football, especially in the United
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States.
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The NHS is socialized medicine.
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It's great.
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And we hear this term mainly coming from the US where it's used as a as scaremongering.
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I would say if the NHS is socialized medicine, we like it and most people are still very,
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very supportive of the concept of of of a national health service.
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Each of the u.k.'s four constituent countries have their own branch of the NHS, so rules
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differ slightly between them.
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But all of the branches operate under the purview of the U.K. parliament.
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There are some services that require patients to pay something out of pocket, such as dental,
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eye care and certain prescription drugs.
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But those fees are low compared to the U.S. and vary by NHS branch.
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By one estimate from a data analytics firm, prescription drugs cost 57 percent less in
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the U.K. than they do in the U.S. Unlike with other universal health care systems that are
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only publicly funded, the government also runs the NHS.
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That means doctors that work in public NHS facilities are employees of the government.
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Most Britons receive their primary care through general practitioners who are frequently referred
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to as GPs.
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They typically act as gatekeepers for secondary care.
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The problem is that people are experiencing the moment as is taking longer to see your
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general practitioner.
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If you want to see them.
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Most GPs are private contractors with the NHS.
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They don't charge patients for care.
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Instead, they earn money directly from the National Health Service.
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Many GPs negotiate contracts with the NHS to determine how much they can charge the
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government for their services.
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GPs may fund their own general practice facilities or they can rent them from the NHS or private
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companies.
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One paper from the Journal of the Royal Society of Medicine found that GPs faced many issues
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because of how general practices are funded in the U.K.
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Some GPs, I think increasingly don't want to take on the running of business aspects
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of general practice, and so there are lots of GPs who are salaried partners, so they
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are paid by the practice to come in and work as a GP, but they don't do any of the business
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side of this stuff.
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There's also a private sector in the u.k.'s health care system.
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It's funded from a combination of out-of-pocket payments, private health insurance and the
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NHS itself.
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The private sector is growing because is being consciously promoted by government and the
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boundaries being blurred.
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But I think the private health care has been growing at a very rapid, steady pace in the
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United Kingdom for the course of several decades.
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That's going to continue.
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That's Nile Gardiner.
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He's the director of the Thatcher Center for Freedom at the Heritage Foundation.
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With regard to the National Health Service, I mean, there's no there's no sign at this
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stage that the U.K. will be moving to a different system to the National Health Service.
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All British parties all committed to the National Health Service.
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I think that's more or more Britons will be opting for private healthcare in the coming
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years and decades, not least because there are long waiting lists with regard to the
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National Health Service.
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And analysis from the London School of Economics found that in the 2018 to 2019 fiscal year,
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NHS England spent around 18 percent of its total expenditure on the independent sector.
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There's been a blurring of the boundaries, if you like.
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For example, cataract surgery is the most common operation done under the NHS.
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Increasingly, it's being provided in the independent sector and the NHS, as has contracts with
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the independent sector to do that work.
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There are implications in terms of staffing.
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Private sector doesn't train its own staff, it takes it from the NHS.
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It cherry picks, takes the low risk patients, not the high risk patients.
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It has an impact on training NHS staff and this is one of the problems with cataract surgery.
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If they're all going to the private sector, hospitals and the NHS staff don't become
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experienced in doing cataract surgery.
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And then along the line you find it's more difficult to staff your NHS unit.
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So it's not without negative consequence.
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And we are paying private companies increasingly to do work for the NHS, including American companies.
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And they're very well established now, particularly in the back office functions and providing
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advice on commissioning support, this kind of thing.
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They're very involved and unfortunately that's likely to increase and something which campaigners
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are extremely worried about.
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I don't think anyone really believed that U.K. voters would decide to Brexit.
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The news that the United Kingdom voted to leave the European Union shocked the world.
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The NHS was a big part of the Brexit media discourse, with the Leave campaign famously
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claiming that the U.K. would take back 350 million pounds a week that could then be funneled
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into the NHS.
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The U.K. Statistics Authority has since said that the claim is a quote, clear misuse of
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official statistics.
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My name is Holly Jarman.
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I'm an assistant professor in the Department of Health Management and Policy at the University
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of Michigan.
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Those promises really did hit home for a lot of people.
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The idea that money would come back from Europe to the U.K. was a very powerful symbol.
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It's not actually true.
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That wasn't really how EU financing works, but we still saw that that was a big part
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of the media discourse and most likely part of people's judgment when they were casting
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their vote.
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The U.K. officially left the EU three years after the original Brexit vote.
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Entering a transitory period through the end of 2020, while the U.K. government negotiates
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international trade deals, the concerns about private American corporations engaging more
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with the NHS came up during the discussion of the post-Brexit trade talks with the United States.
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When you're dealing in trade, everything's on the table, so NHS or anything else are
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a lot a lot more than that.
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Backlash to President Trump's comments on the NHS led to many British politicians assuring
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their constituents that the NHS was not going to be a part of the trade talks.
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The NHS is in no way on the table.
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President Trump and backtracked on his comments, saying he wouldn't consider the NHS as part
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of the trade deal.
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A lot of trade negotiations are actually quite secretive by nature.
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The two sides don't really want to reveal a lot about what they're looking for in a
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deal.
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Our concern really as health researchers is that the NHS really won't be accounted for
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in that deal, that the U.K. government's preferences have been shown to be largely economic and
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not so much on the focusing on the health of people in Britain.
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The problem is that the NHS is is already on the table.
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It has been for a while.
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The politicians who are now going to be negotiating the trade deals, you know, it's going to be
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across many fronts.
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Campaigners were saying, okay, put your money where your mouth is.
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If if you're saying the NHS won't be in a trade deal, then let's see legislation that
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sets that out says cast in stone.
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And they haven't rushed to do that.
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Trade negotiations, cover everything at once.
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And it's difficult to tell how they are going to be pushing for the liberalisation of drug
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regulations and to what extent the Johnson cabinet would actually agree with any changes
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that would be proposed to the way the U.K. regulates pharmaceuticals.
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It's really a central government led process.
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That's not that democratic and does represent big business.
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And I think that's why a lot of people get very concerned and anxious around trade agreements.
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There are some who say the NHS won't be harmed by Brexit, even in the event a trade deal
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with the EU isn't reached by the end of the year.
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I don't expect that we're going to see huge changes actually in the Brexit era with regard
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to the to the National Health Service.
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And so I think with with regard to the NHS, we're not likely to see a significant impact
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as a result of of Brexit.
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I think the free trade deal will be largely focused upon the service industry, which of
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course is now the largest part of both the US and British economies.
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Whatever effect the trade deals end up having on the U.K., reforming the NHS will continue
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to be a big part of the country's political conversation.
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People's support for the NHS in the U.K. is very strong.
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There's no other country that when we hosted the Olympics in London, we had nurses jumping
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on beds and the NHS was actually a part of that ceremony and a part of that national
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celebration.
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The U.K.'s NHS is very important in British politics.
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It's an important symbol of Britishness in that context.