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Their notion was to reduce costs, not (necessarily) to earn more profit. They wanted to reduce medical costs, and therefore their insurance costs, basically. I
by sidlls 4y ago
Their notion was to reduce costs, not (necessarily) to earn more profit.
They wanted to reduce medical costs, and therefore their insurance costs, basically. I worked in a health tech company when this news broke years ago and was skeptical then. Health care is a hard industry with tons of perverse incentives and opposing interests. Any solution for our health care costs will include government regulations and laws. The private sector cannot, on its own, do it.
- lotsofpulp 4y agoThe existing profit margins are a rough measure of how much you can expect them to reduce costs, absent any technological advancements that lead to more efficiency. If there’s multiple huge companies operating with similar, small profit margins over the course of 10+ years, it probably means they have optimized as much as possible within the constraints of the existing system. Hence, I would conclude that any further optimizations would have to come from changing the constraints.