Re:Investors Extracted $400M from a Hospital Chain
by jellicle on Tuesday October 20, 2020 @12:25PM
(#24839270)
If the government is the only payer, they can squeeze the excess profit out of the system year over year.
"Hey, we noticed you pay your executives $25 million a year. We decided to cut the executive pay allowance this year."
"Hey, we noticed you're paying your shareholders 50% of your revenue. You seem pretty profitable, so we're cutting your reimbursement rates for all procedures this year."
Such a system is eminently practical. What's not practical is the current US system.
"Hey, we noticed you pay your executives $25 million a year. We decided to cut the executive pay allowance this year."
"Hey, we noticed you're paying your shareholders 50% of your revenue. You seem pretty profitable, so we're cutting your reimbursement rates for all procedures this year."
Such a system is eminently practical. What's not practical is the current US system.