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Does the medicine expire quickly? Or does the cost of storing it/administer it differ from other medicine? Hospital profit margins don’t seem particularly hig
by lotsofpulp 2y ago
Does the medicine expire quickly? Or does the cost of storing it/administer it differ from other medicine?
Hospital profit margins don’t seem particularly high (~10%).
https://www.macrotrends.net/stocks/charts/HCA/hca-healthcare/profit-margins https://www.macrotrends.net/stocks/charts/HCA/hca-healthcare...
The other publicly listed company I could find is Tenet, which doesn’t do so well:
https://www.macrotrends.net/stocks/charts/THC/tenet-healthcare/profit-margins https://www.macrotrends.net/stocks/charts/THC/tenet-healthca...
> Why the high price? One explanation is that hospitals can — and do — mark up products to balance overhead costs and generate revenue.
This is something all businesses do. Some products/services are sold at higher margin than other products/services, for a variety of reasons.
Edit: CHS is the other large publicly listed hospital company, also has very low profit margins.
https://www.macrotrends.net/stocks/charts/CHSCP/chs-inc/profit-margins https://www.macrotrends.net/stocks/charts/CHSCP/chs-inc/prof...