Cost containment efforts will fail if they continue to ignore the structural relationships between health care costs and private profit in capitalist society. The recent history of coronary care shows that apparent irrationalities of health policy make sense from the standpoint of capitalist profit structure. Coronary care units (CCUs) gained wide acceptance, despite high costs. Studies of CCU effectiveness, using random controlled trials and epidemiologic techniques, do not show a consistent advantage of CCUs over non-intensive ward care or simple rest at home. From a Marxian perspective, the proliferation of The financial burden of health care has emerged as an issue of national policy. Legislative and administrative maneuvers purportedly aim toward the goal of cost containment. New investigative techniques in health services research, based largely on the cost-effectiveness model, are entering into the evaluation of technology and clinical practices. My purposes in this paper are to document the analytic poverty of these approaches to health policy and to offer an alternative interpretation that derives from Marxian analysis.In the Marxian framework, the problem of costs never can be divorced from the structure of private profit in capitalist society. Most non-Marxian analyses of costs either ig- But the crisis of health costs intimately reflects the more general fiscal crisis, including such incessant problems as inflation and stagnation, that advanced capitalism is facing worldwide. Wearing blinders that limit the level of analysis to a specific innovation or practice, while not perceiving the broader political-economic context in which costly and ineffective procedures are introduced and promulgated, will only obscure potential solutions to the enormous difficulties that confront us.In this paper I focus on coronary care, having selected this topic merely as one example of apparent irrationalities of health policy that make sense when seen from the standpoint of the capitalist profit structure. The overselling of many other technologic advances such as computerized axial tomography and fetal monitoring (which have undeniable usefulness for a limited number of patients) reflects very similar structural problems.One cautionary remark is worthwhile. The Marxian framework is not a conspiratorial model. The very nature of capitalist production necessitates the continuing development of new products and sales in new markets. From the standpoint of potential profit, there is no reason that corporations should view medical products differently from other products. The commodification of health care and its associated technology is a necessary feature of the capitalist politi-A1JPH