reply to post by TKDRL
Now average into what you think that a hospital charges for all the salaries, utilities, consumables, rentals, insurances, liabilities, drugs,
certifications, support, cleaning, regulations, etc... and you'll, quickly figure out that its not as high a profit business as you think it is.
For example, what I do...
The government makes us have to get immunizations, certifications, registries, carry liability, equipment has to be serviced and certified regularly,
on top of all the normal business operating expenses. Heck, they just made us install a $100K electronic medical records tracking system, which eats
one hell of a dent into our yearly profit.
On average out of every two patients we run a test on, we only make money off of one. If one does not show, or we cannot get two, we run at a loss for
that night. When the nights that generate losses start outweighing the nights that we generate a profit, we go out of business
You cannot run ANY
business at a constant loss, and the government, through medicare and medicaid, want to pay less for services then what they
actually cost to preform. Medicare sets the average that all the other insurances base their payments on as well.
I used to work for a home health care company. It used to cost us roughly $100/month to pay the loan on an oxygen concentrator. Medicaid would only
pay us $80 per month for that concentrator. That's -$20 per month for every O2 concentrator we had on a medicaid patient. NOW... Add in that a driver
had to be paid to take that to the patient, the sieve beds had to be regularly replaced, O2 tanks had to be supplied in case of power outage, someone
had to be paid to sit and jump through Medicaids PITA hurtles to get any payment whatsoever, etc... Now that -$20 is more like -$100...