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It's the MO to extract profits from private, non-profit kindergartens here in Norway. Non-profit kindergartens get subsidies from the state, so it's lucrative t
by magicalhippo 2y ago
It's the MO to extract profits from private, non-profit kindergartens here in Norway. Non-profit kindergartens get subsidies from the state, so it's lucrative to have that status.
The owners of the kindergarten hire the daily manager. They hire out the building itself to the kindergarten, as well as HR, accounting services etc. The prices are not 1000% market rate but certainly not competitive. By controlling the daily manager they make sure the kindergarten doesn't try to find better deals.
Thus the kindergartens make no profit, yet the owners can extract a decent profit regardless.
Pretty sure this idea was imported, and not something unique here.
- rayiner 2y agoIn the U.S. this has come up in the healthcare space because the Affordable Care Act limits insurer profit margins to a specified value. People have been prosecuted and imprisoned for violating this requirement.
- magicalhippo 2y agoSeems legislation here is more lax. Generally rules and regulations here assume people play nice. Sadly that seems a bit naive these days.