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Doctors and hospitals often complain that a large share of their revenue is spent on equipment, procedures and labs. Can you comment on that?
by satellite2 5y ago
Doctors and hospitals often complain that a large share of their revenue is spent on equipment, procedures and labs. Can you comment on that?
- GabrielBen 5y agoHospitals are very interested in running their operations close-to-a-loss. This is more important than the spend-share on equipment or salaries. Hospitals are setup mostly as non-profits, which means they have no incentive to have an operating margin. Furthermore, hospitals can have lots of leverage, as sometimes they are the only one in 20 miles or more: so the closer they are to bankrupcy, the more money they can ask government. Hospitals are very close to the mercantilist corporations pre-liberalism in this way: they are protected from competition and from their own failure.