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42 sats \ 6 replies \ @Bell_curve 7 Aug \ parent \ on: Socialism In Plain Sight econ
Understood
I think most hospitals barely break even. In fact they would be ecstatic to break even
From my understanding, it’s a lot more complicated than that.
They essentially hide their profits in the fake prices they don’t really charge anyone.
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While they may be not for profit the C suite pays pretty well...
For what its worth, the deep issue with health care IMO is so called insurance and how they inflate the costs of procedures, supplies, and drugs. Not really the non-profit status.
Non-profits aren't some commie scam. They aren't anti-free market either. In a free society they would just be companies and they could do what ever they wanted. Take capital out of the business like regular companies or give it back to their customers in pricing discounts as many do.
I know a guy that runs a non-profit ISP and due to that status he's able to offer some services to other non-profits at discounted rates. But that is mostly due to the tax benefits. Because he doesn't have so much of the profit coming out of the business in the form of taxes he can use that money in other ways.
They still charge money and pay employees. It really the taxes that are different. Most people think of non-profit as a moral high ground or something. You need to realize that the NFL is a non-profit. I don't consider them anything but an entertainment business.
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You need to realize that the NFL is a non-profit.
You learn something new everyday
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In a past life I did some work for them as a contractor...
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I agree and I wasn't trying to elevate 'nonprofit' as morally superior or whatever...
the root problem is an over reliance on third party payment and third party is usually federal government or another entity that is heavily subsidized
edit: most if not all hospitals are over reliant on Medicare and Medicaid for payment, more evidence that health care is financed by taxpayers
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Most hospitals are large bureaucratic organizations with lots of overhead
They are magnets for bureaucratic displacement
If you look at employment trends in healthcare especially hospitals all the growth since 1990 is in admin staff, not practitioners of medicine
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