(August 25, 2016 at 8:37 pm)Cato Wrote:(August 25, 2016 at 3:51 pm)Brian37 Wrote: A fucking toothbrush in a hospital which would cost $1 at a dollar store gets marked up to 5 to 10 bucks. It is still bullshit overpricing for nothing but greed.
Most hospitals struggle to break even, although there are a few that make millions. You might also be surprised to learn that most of the money makers are non-profits. Articles on the subject are easy to find.
The toothbrush example is overly simplistic. Hospital pricing is extremely complex and has to do with the varying revenue streams. They typically lose money on Medicare and Medicade service and must raise prices to offset (would also include emergency services given free). The negotiations with private insurers work similarly to clothing retailers always advertising some double digit percent discount to 'regular' price. The fact that people actually believe the 'regular' price bewilders me. Same with jacking up the price on a toothbrush in the itemization you see. Insurance companies pay a negotiated percentage.
Here's a paper on the topic if you have the time and desire:
http://content.healthaffairs.org/content...type=HWCIT
I don't know where you live, but my county hospital has a corporate name.
