3 ms·
Profit margins are irrelevant if you inflate your costs to reduce them.
by antisthenes 1y ago
Profit margins are irrelevant if you inflate your costs to reduce them.
- dh2022 1y agoNot really... If you want more $s by inflating costs and keeping the margin constant, then you will need more capital for paying these higher costs. This additional capital will either come from equity or from debt. Currently both equity and debt are expensive.... Profit margin is quite relevant...
- ceejayoz 1y agoThe capital comes from raising premiums. Mine went from $3k/month to $3.6k/month this year. Bonus points if you can steer the increased costs to providers you own. https://www.statnews.com/2024/11/25/unitedhealth-higher-payments-optum-providers-converts-expenses-to-profits/ https://www.statnews.com/2024/11/25/unitedhealth-higher-paym...