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this post was submitted on 28 Feb 2024
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I've worked in hospital systems since I graduated from college. There has been one meeting (out of all the meetings!) that I have absolutely never forgotten due to something that was brought up.
They thought it was super cool to talk about how much cash our new surgical center was bringing in. I know it was small in the scheme of things, but in my head a hospital should be super happy when they don't have to perform surgery on a person. They shouldn't be happy to perform surgery so that they can make money.
For me it was a quarterly town hall with hospital leadership and they kept pushing “we are a business…” and all I could think was “no, we are a hospital…” because being a business is indicative of being profit motivated. I know, I know, that’s exactly what it is, but it just really bothered me to hear that line over and over.
When you have an actual functioning competitive market the money you bring in correlates with the value of the service you provide, so it makes perfect sense to be happy about the money the new surgical center is bringing in. That means it's useful.
The problem is that the health care market is regulated and subsidized in so many ways, many of them conflicting with each other, that competition is very limited and price discovery is reduced to "whatever the patient (and their insurance) can afford to pay" since they can't go anywhere else. Fix that and there won't be any reason for hospital owners or employees to feel guilty about making money.