Health, Inc: How Modern Medicine Became a Monopoly

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By michaelw


The symbol of modern medicine
The symbol of modern medicine
Morris Fishbein, head of the AMA, 1924-1949, on TIME cover, 1937
Morris Fishbein, head of the AMA, 1924-1949, on TIME cover, 1937

The True Story About How Modern Medicine Became the Only Show in Town

When you are sick and go to the doctor, you take it for granted that you are going to the person who knows what to do to help you get better. When the doctor diagnoses what your problem is, and then pulls out his or her prescription pad and writes you a prescription for a drug that will take care of the problem, you then feel relieved.

But how would you feel if the doctor’s prescription was for an herbal or homeopathic remedy, or instead of a prescription the doctor gave you nutritional advice, and/or performed acupuncture on you?

These days, you might like this second scenario better. With the growing popularity of integrative medicine, more and more people are embracing a holistic model of medicine. But not too long ago, there were no choices, and any health provider who didn’t practice the modern medicine approach was labeled a quack and run out of town as soon as possible.

Modern medicine often calls itself “Traditional Medicine,” and other systems of medicine “Alternative.” But modern medicine has been around a little over 100 years, while traditional medical systems such as Chinese and Ayurvedic Medicine have been around a few thousand years. Even more recent medical systems have been around as long or longer than modern medicine—Homeopathy has been around over 200 years; and Chiropractic and Naturopathic medicine have been around over 100 years. And of course, people have been using herbs and dietary remedies since the beginning of recorded history.

So how did it come to be that modern medicine grabbed such a stronghold on the field of healing, essentially becoming a monopoly called Health, Incorporated?

Let’s take a look.

In the nineteenth century in the U.S., there were two different types of doctors—the allopaths, who prescribed drugs and crude surgeries, and the alternative healers, who prescribed various natural approaches. Neither of the two different types of doctors dominated the marketplace, and because it was easy for a person to become a doctor, most people practicing the healing arts were poor.

The allopaths weren’t happy about all the competition—both amongst their fellow allopaths and amongst the alternative healers—which was keeping them poor, and began agitating in order to do something about it. They had already formed a trade union, the American Medical Association, in 1847, started publishing a journal, The Journal of the American Medical Association, in 1883, and then in 1897 the trade union was incorporated.

They started studying the matter to determine what they could do to fix the situation, and in 1901 the Journal of the American Medical Association released the following statement: “The growth of the profession must be stemmed if individual members are to find the practice of medicine a lucrative profession.”

Next, the American Medical Association asked the Carnegie Foundation, the foundation founded by Andrew Carnegie, the billionaire steel magnate, to survey all medical schools and issue a report as to how to fix the system. The Carnegie Foundation commissioned Abraham Flexner, brother of Simon Flexner, the head of the Rockefeller Institute for Medical Research, to write the report.

The Flexner Report, as it became known when it was published in 1910, echoed the belief of the American Medical Association that there were too many doctors, and also echoed the belief of the American Medical Association that there were too many doctors of “non-scientific medicine.”

The aim of the Flexner Report was to standardize the field of medicine, to determine what adequate training of a doctor should consist of, to eliminate alternative doctors, and to limit the number of doctors practicing allopathic medicine.

Based on the Report, medical schools that offered training in various alternative disciplines including herbal medicine, naturopathy and homeopathy, were told either to drop these courses from their curriculum or lose their accreditation and underwriting support. A few schools resisted for a time, but eventually all complied with the Report or shut their doors.

By the time the dust settled from the aftermath of the Report, there was an enormous shakeout in the number of medical schools. In 1904, there were 160 M.D. granting institutions with more than 28,000 students (with many of these schools teaching alternative therapies). By 1920, there were only 85 M.D. granting institutions, educating only 13,800 students. By 1935, there were only 66 medical schools operating in the U.S.

Furthermore, diversity also came to an end in the field of medicine with the publication of the Report. At the time of the Report’s publication, there were seven medical schools solely for African-Americans, and three solely for women. Of these, five of the seven African-American medical schools were closed, and all three of the schools for women were also closed.

But the American Medical Association wasn’t done asserting itself. Having gained a stronghold on the field of medicine by limiting the number of medical practitioners, it wanted to stamp out all alternative practitioners for once and for all. It was the work of George “Doc” Simmons and Morris Fishbein that accomplished this task.

Both men were editors of the Journal of the American Medical Association and heads of the American Medical Association; Simmons headed the organizations from 1900-1924 and Fishbein from 1924-1949. They both derisively labeled as “quacks” any alternative practitioner, and used the full weight of the Journal to expose the practitioner as a fraud and get their work stopped.

But both of these men were petty, vindictive and corrupt, and were only looking out for their own best interests. Simmons was never a doctor, although he spent years in medical practice—he obtained a diploma by mail from Rush Medical College, a diploma mill. Fishbein did complete studies at a medical school, although he never completed his internship, never received a diploma, and never practiced medicine a day in his life.

What Simmons and Fishbein had in common, besides a complete dictatorial control of the AMA and a hatred for all types of alternative modalities, was a desire to use their position to fatten their wallets through extortion.

They had a deal with pharmaceutical companies, whereby they would give the AMA Seal of Approval on various drugs, if the drug companies made a substantial donation to the AMA; a portion of the donation went into the pockets of Simmons and then, after Simmons was forced to retire from the AMA, Fishbein. Since the AMA had no labs, no testing equipment, or any research staff, it was by the whim and decree of these two men what drugs got the Seal of Approval.

Another ruse they had was to buy up huge sums of stock on drugs that they were about to give the Seal of Approval to. Once the approval was released, the stock price would go through the roof, and Simmons and Fishbein would reap the rewards.

Simmons was forced to retire in 1924; Fishbein kept his stranglehold on the AMA until 1949, when he was kicked out.

But the damage was done, and promising natural and holistic therapies were left in their wake. Instead the public got Health, Incorporated, and was lead to believe that only a doctor who practiced modern medicine knew what was best.

Things are changing now for the better, but for many there still is a reliance on the doctor of modern medicine to be the trusted final word in helping us to get healthier.

It is important to understand this little history lesson in order to understand better how the field of medicine has come to be what it is now, and to help us realize that we are the ones who should be the final arbiter of our health. To do so means to empower yourself.

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michaelw profile image

michaelw  says:
2 years ago

I'm glad you found the information helpful. Most people don't realize the origins of modern medicine. It had to start somewhere, and it wasn't a very honorable beginning.

Catherine C. Greene  says:
2 years ago

Thank you for this article. I am a patient with metastatic breast cancer, stage 4. Four years ago I chose to leave the country at my own expense to access an alternative treatment. Today, the cancer is almost totally eradicated and I have never suffered a day of sickness, weakness or physical damage such as could have been caused by the cheom therapies that were offered to me here. My oncologist told me that I could not be cured, that the cancer would keep returning and that with each return I would have to undergo new chemo. This experience had been so much better than that!

michaelw profile image

michaelw  says:
2 years ago

Thank you for sharing your information Catherine. It's very unfortunate that you, and so many others, often have to leave the country to seek out clinics that offer alternative clinics for cancer treatment. Fortunately you were able to do so, and it was also fortunate that you had the inner strength to carry on, even with the doom and gloom scenario that was foretold to you by your oncologist. Even though the standard treatments for cancer often times have negative consequences, because oncologists don't believe in alternative treatments, the standard approach is the only thing they will tell you can help you, and if you choose not to do them, as you did, they will put the fear of God in you.

Kathryn Mora  says:
2 years ago

Thank you for this much needed article! You're right, it is important to look at the history to understand why the field of medicine has become what it is today. We all MUST take an active part in our health rather than sit back and entrust our life to someone else. It is our life and we have to take part in our health. Modern medicine is causing natural childbirth to become close to extinction. Out of 4.3 million babies born in the U.S. every year only 5 percent are born without drugs. Childbirth, a natural event, has become big business for hospitals, doctors, drug and insurance companies, all too often without the consideration for the well-being of women and their babies. Birthing is the largest source of income for American hospitals. A normal hospital birth (24-hour stay) costs between $8,000-$10,000 and for cesareans the cost is doubled. People think that hospitals are the safest place to give birth. Wrong! There are 25 infectious strains of bacteria, most found in hospitals, that are resistant to antibiotics. Even though the United States spends over $50 billion dollars on childbirth, more than any other nation, America has the 32nd highest infant mortality rate in the entire world and the 14th highest maternal mortality ratio among developed nations. Every three babies are born by cesareans in this country and the rate continues to climb. Also, over 90 percent of infants in this country are born with narcotics from epidurals, pitocin, acetaminophen, etc. in their systems and none of these drugs have been tested for the infant safety. The more technology used in childbirth, the more dangerous it becomes and the larger the hospital the more dangerous it is for mother and baby. Hospital schedules do not depend on the needs of mothers and babies, but on the needs of the hospital. Often mothers are given pitocin and sometimes cytotec (a dangerous drug that is not FDA approved) to induce and/or speed up the birth process rather than allowing the laboring mother to progress at her own natural pace. Modern medicine has taken over the natural event of childbirth and turned it into a big business.

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