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This seems to be highly bifurcated, like so much in the US, between the haves and the have-nots. But overall I don't think it's fair to say "Hospitals BARELY ma

by bri3d 5y ago

This seems to be highly bifurcated, like so much in the US, between the haves and the have-nots. But overall I don't think it's fair to say "Hospitals BARELY make their budget." As usual, the whole system is broken. There are some hospitals with a wealthy customer base with full-ride insurance who can bill obscene amounts and profit massively, and then there are some hospital systems with uninsured and underinsured customer bases who are just scraping by. I looked up my local hospital network, UCHealth (Colorado, there are many UCHealths it would seem), and their EBITDA in 2021 was 16.6%. Mayo Clinic posted 1.2 billion dollars in _operating profit_ in 2021, and also have a gigantic investing arm with several billion dollars under management. Then we look at networks like Spectrum in Michigan, who posted only a 3.6% margin, or Henry Ford, with a negative operating margin offset by investment income, and it becomes clear that _some_ hospitals barely make their budget while _others_ rake in dollars.

conductr 5y ago
It’s the same economics that create food deserts in some places and Whole Foods in others. Or how banks don’t exist in poorer neighborhoods despite being profitable on others. There is no incentive to allow one to subsidize the other. It happens with health networks that are mission based but otherwise, not usually. Try balancing out your research with the taxpayer funded public hospitals, it’s a train wreck.
mrep 5y ago
> bill obscene amounts and profit massively Profit how? Your 2 examples of UCHealth and Mayo Clinic are both non-profits.
- butlerm 5y ago
  Non-profits generally use substantial income in excess of revenues for expansion, just like many for-profit organizations. Excess revenues can also be absorbed in salary and other compensation or cost increases, usually top down of course. The main difference is that non-profit organizations are prohibited by law from making distributions to owner-shareholders. They can spend excess revenues in any number of other ways, starting with the furniture for example.

by bri3d 5y ago

conductr 5y ago

It’s the same economics that create food deserts in some places and Whole Foods in others. Or how banks don’t exist in poorer neighborhoods despite being profitable on others. There is no incentive to allow one to subsidize the other. It happens with health networks that are mission based but otherwise, not usually. Try balancing out your research with the taxpayer funded public hospitals, it’s a train wreck.

mrep 5y ago

> bill obscene amounts and profit massively Profit how? Your 2 examples of UCHealth and Mayo Clinic are both non-profits.

butlerm 5y ago
Non-profits generally use substantial income in excess of revenues for expansion, just like many for-profit organizations. Excess revenues can also be absorbed in salary and other compensation or cost increases, usually top down of course. The main difference is that non-profit organizations are prohibited by law from making distributions to owner-shareholders. They can spend excess revenues in any number of other ways, starting with the furniture for example.