I just read a report from the Michigan Health Purchasers Coalition (MIHPC) that essentially concluded that larger hospitals have had profits increased dramatically.
Now we all know, if we have spent any time in a hospital, we are charged exorbitant amounts for the most sundry items such as aspirin. You can’t get out of a hospital without spending tens of thousands of dollars.
The hospitals of course blame insurance companies and vice versa. Big Pharma shares the blame as well. The blame game is passed around, all to the detriment of the patients. Many experts acknowledge publicly our health care system is sick and won’t be able to be maintained over the long run.
I feel sorry for smaller hospitals. They are unable to keep up with the costs of operation, and many of them are closing or being absorbed by the bigger guys. That’s unfortunate because some might argue the smaller guys offered more personable care and cared for the people and community they were located in.
But then again, maybe hospitals struggling with profitability need to be like small businesses. “Small businesses are experts in doing more with less- while providing top-notch goods and services to their communities,” said Brian Callery, President and CEO of the Small Business Association of Michigan. “Small businesses need hospitals to do the same thing- identify ways to provide exceptional care for patients, while lowering costs.”
This is what Bret Jackson, President of MIHPC has to say. “Prices for hospital services have increased by nearly 250 percent over the past 25 years- faster than the cost of college tuition, childcare and housing. Meanwhile the extreme profits of the largest hospital systems are out of balance making it challenging for patients to afford necessary treatments.”
The MIHPC report shows 17 percent of Michigan hospitals have an operating margin of below 4 percent. Most of these are small hospitals located in rural areas. However, 23 hospitals have a profit margin of over 20 percent, with eight hospitals showing profit margins over 30 percent.
The highly profitable hospitals are Corewell Health, Henry Ford Health, McLaren Health and Trinity Health. They appear to be making money hand over fist at the expense of their patients.
20 percent is exceptional in the business world. 30 percent is highway robbery. No company should show that kind of profit, yet bigger hospital conglomerates are doing just that.
Calley added, “It’s disappointing to see this level of profit margin when small businesses are continually feeling the pain of crushing health care costs. We’re hopeful that Michigan’s hospitals will turn their focus to structural reforms that reduce costs so that small businesses can afford t continue providing health care for their employees.”
Calley represents businesses. But what about the individual? Why should they pay exorbitant health care costs when the hospital their insurance company sends them to is making 30 percent profit? That’s simply outrageous. One has to wonder what the profit margins for the larger health insurance companies is? Are they also showing huge profits?
Enough of my rant. MAY EACH And EVERY READER have a fun-filled, safe 4th of July weekend.
