william schwartz: and the other is for non-acute care-- things such as dentistry... nursing home care, and over-the-counter drugs. now, that's scarcely mentioned as a factor contributing to the rapid rise in health-care costs. nursing homes, you hear mentioned, but this 45%, which includes all kinds of things-- researchnd psychologists and... opticns and... podiatrists and-- the'a hugeist, it fills three pages-- that group of activities is rising. why have the costs risen so precipitously? for one thing, the medical scene itself has changed. william schwartz: as a young physician just starting, i thought we were doing wonderful things. in retrospect, it's so clear to me now how limited we were. and none of us could have imagined the changes that have takeplac between then and now. let me give you one ample: in the old days, what would happen is, if you had undiagnosed abdominal pain, we did what was called an exploratory laparotomy, which means that you open the patient's abdomen from the top of his abdomen, from his chest, all the way to the pelvis. and then the sur

. >> reporter: we are at the ander son blacksmith shop, historical colonial williams berg joining me is ken schwartz master blacksmith just talk about the armoury. >> it is a reconstruction of james anderson's public armoury and blacksmith shop that operated during the revolutionary war. it was built at state expense to repair weapons opened by the government to keep the troops armed out the in field and do other iron work for the state. at the moment we are making nails. >> reporter: take me through the process >> as you make the nail, you point the end of the bar, work it on the corner of the anvil and that defines the length of the nail, and then that will be cut from the bar, and finally held up right, while the head is fashioned. >> reporter: and talk to me -- you use the nails you make here, in the armoury to build stuff >> yeah, during the revolutionary war the shop employed 8 boys to make nails they produced 25,000 a week, for use by the state, today we make nails that are used within colonial williams burg, the building we are standing in was built with nails that we made, along with hinges