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Manhours cost money, equipment and infrastructure cost money, supplies and consumables cost money. If the primary goal of a hospital is to save lives, which it
by Dalewyn 3y ago
Manhours cost money, equipment and infrastructure cost money, supplies and consumables cost money.
If the primary goal of a hospital is to save lives, which it is, then the hospital needs to generate sufficient revenue to enable that goal.
- phkahler 3y agoNo doubt. But skimming some of the revenue for profit goes directly against that
- Dalewyn 3y agoProfit is necessary to invest in the future. If revenue matches cost leading to a gross profit of zero, you can only ever keep whatever it is you have today with no room to advance or adapt or even maintain.
- JumpCrisscross 3y ago> skimming some of the revenue for profit goes directly against that Non-profit hospitals don’t fare better or worse on health outcomes than for-profit hospitals [1]. They are run less efficiently [2]. If you’ve been on a non-profit Board, particularly a service-model non-profit, this makes sense. [1] https://www.hsph.harvard.edu/news/press-releases/hospitals-converting-to-for-profit-status-show-better-financial-health-no-loss-in-quality-of-care/ https://www.hsph.harvard.edu/news/press-releases/hospitals-c... [2] https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7439627/ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7439627/
- Arn_Thor 3y agoExcept, if it's tax funded the hospital does not need to generate revenue to enable that goal. It can focus on saving lives, and maybe even do preventative care which lowers overall health costs for society by dealing with problems early on. As a society, that saves money, leaving everyone better off