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February 3, 2011 at 10:22 AM in reply to: OT: No worries folks, federal debt is now under control #662853February 3, 2011 at 10:22 AM in reply to: OT: No worries folks, federal debt is now under control #662990
bubba99
Participant[quote=Djshakes]bubba…you should shut up if you don’t know what you are talking about.
FY10 Scripps expenses per GL:
Professional Srvcs to SCMG (Scripps Clinical Medical Group) – $161,513,071
Depreciation, Amoritization, interst fee & expense and Bond interest series 2008 – $18,580,177
I don’t even want to waste time addressing the rest of the fail in the previous responses.[/quote]
Wow, you are a genius. You cite one part of one institutes budget and claim it applies to the world. Scripts has 5 campuses, 10 clinics, and 10 costal medical centers. If your numbes were worth a $h!t, you could see that is about $700K per campus in all capital expenses.
But if you would still like to tell me to shut up, give me an address and we can do it in person you j@!c$a$$
February 3, 2011 at 10:22 AM in reply to: OT: No worries folks, federal debt is now under control #663324bubba99
Participant[quote=Djshakes]bubba…you should shut up if you don’t know what you are talking about.
FY10 Scripps expenses per GL:
Professional Srvcs to SCMG (Scripps Clinical Medical Group) – $161,513,071
Depreciation, Amoritization, interst fee & expense and Bond interest series 2008 – $18,580,177
I don’t even want to waste time addressing the rest of the fail in the previous responses.[/quote]
Wow, you are a genius. You cite one part of one institutes budget and claim it applies to the world. Scripts has 5 campuses, 10 clinics, and 10 costal medical centers. If your numbes were worth a $h!t, you could see that is about $700K per campus in all capital expenses.
But if you would still like to tell me to shut up, give me an address and we can do it in person you j@!c$a$$
February 2, 2011 at 10:11 AM in reply to: OT: No worries folks, federal debt is now under control #661527bubba99
Participant[quote=pri_dk]Another commonsense assessment of the budget strategy:
http://www.economist.com/blogs/democracyinamerica/2011/02/gop_budget_cuts%5B/quote%5D
A good article, but the author keeps trying to find truth in word and deed. There is none. The republicans are counting on not being able to cut anythng and blaming the deficit on the democrats. Tax cuts good, deficit bad. Stick to the message that big government causes all our ills, but not really tackle defense, medicare or social security cuts.
I am sure that all we will hear is rhetoric until after the 2012 elections, and then back to business as usual. The republicans have been so good at staying on message, while the democrats seem to be only a loosly connected band of independents.
IMHO the tea party is a direct result of the exceptional abilty of the reps ability to stay on short tag line messages.
February 2, 2011 at 10:11 AM in reply to: OT: No worries folks, federal debt is now under control #661589bubba99
Participant[quote=pri_dk]Another commonsense assessment of the budget strategy:
http://www.economist.com/blogs/democracyinamerica/2011/02/gop_budget_cuts%5B/quote%5D
A good article, but the author keeps trying to find truth in word and deed. There is none. The republicans are counting on not being able to cut anythng and blaming the deficit on the democrats. Tax cuts good, deficit bad. Stick to the message that big government causes all our ills, but not really tackle defense, medicare or social security cuts.
I am sure that all we will hear is rhetoric until after the 2012 elections, and then back to business as usual. The republicans have been so good at staying on message, while the democrats seem to be only a loosly connected band of independents.
IMHO the tea party is a direct result of the exceptional abilty of the reps ability to stay on short tag line messages.
February 2, 2011 at 10:11 AM in reply to: OT: No worries folks, federal debt is now under control #662192bubba99
Participant[quote=pri_dk]Another commonsense assessment of the budget strategy:
http://www.economist.com/blogs/democracyinamerica/2011/02/gop_budget_cuts%5B/quote%5D
A good article, but the author keeps trying to find truth in word and deed. There is none. The republicans are counting on not being able to cut anythng and blaming the deficit on the democrats. Tax cuts good, deficit bad. Stick to the message that big government causes all our ills, but not really tackle defense, medicare or social security cuts.
I am sure that all we will hear is rhetoric until after the 2012 elections, and then back to business as usual. The republicans have been so good at staying on message, while the democrats seem to be only a loosly connected band of independents.
IMHO the tea party is a direct result of the exceptional abilty of the reps ability to stay on short tag line messages.
February 2, 2011 at 10:11 AM in reply to: OT: No worries folks, federal debt is now under control #662328bubba99
Participant[quote=pri_dk]Another commonsense assessment of the budget strategy:
http://www.economist.com/blogs/democracyinamerica/2011/02/gop_budget_cuts%5B/quote%5D
A good article, but the author keeps trying to find truth in word and deed. There is none. The republicans are counting on not being able to cut anythng and blaming the deficit on the democrats. Tax cuts good, deficit bad. Stick to the message that big government causes all our ills, but not really tackle defense, medicare or social security cuts.
I am sure that all we will hear is rhetoric until after the 2012 elections, and then back to business as usual. The republicans have been so good at staying on message, while the democrats seem to be only a loosly connected band of independents.
IMHO the tea party is a direct result of the exceptional abilty of the reps ability to stay on short tag line messages.
February 2, 2011 at 10:11 AM in reply to: OT: No worries folks, federal debt is now under control #662661bubba99
Participant[quote=pri_dk]Another commonsense assessment of the budget strategy:
http://www.economist.com/blogs/democracyinamerica/2011/02/gop_budget_cuts%5B/quote%5D
A good article, but the author keeps trying to find truth in word and deed. There is none. The republicans are counting on not being able to cut anythng and blaming the deficit on the democrats. Tax cuts good, deficit bad. Stick to the message that big government causes all our ills, but not really tackle defense, medicare or social security cuts.
I am sure that all we will hear is rhetoric until after the 2012 elections, and then back to business as usual. The republicans have been so good at staying on message, while the democrats seem to be only a loosly connected band of independents.
IMHO the tea party is a direct result of the exceptional abilty of the reps ability to stay on short tag line messages.
February 1, 2011 at 8:03 AM in reply to: OT: No worries folks, federal debt is now under control #660455bubba99
Participant[quote=SK in CV][quote=bubba99]
I read your response, and I have to ask “did you ever take accounting or finance?’ and if you did, did you fail the course?.So your wife is a health care provider with no embedded cost. You missed the point. Hospitals do have “big” capital costs. Physicians are not the big driver of health care costs. Hospitals, and equipment are.
Using your words “nonsensical”, do you really believe that an aspirin costs $40.00 – now that is nonsensical. Where do you think the cost comes from – the $15.00/hour janitor that cleans up? Or the $200,000/year doctor?. No it comes from capital and lease costs.
Is your first language english? or are your comments based on just being studid?[/quote]
As to accounting and finance, yes. Did quite well. Went on and got a masters degree. Spent most of the last 30 years working as a CPA, consultant (including medical financing consulting), and as an economist.
As to the costs….well, these are your words.
[quote=bubba99]
The expense is coming from huge amounts of embedded capital costs, the interest on those capital expenditures, and profit on those assets. Finance, Insurance and Real Estate (FIRE) is the real driver of medical “Access” cost.The access provider borrows from its huge cash flows to buy equipment and buildings from its non-regulated subsidiary, pays interest to the non-regulated sub, and we get stuck with double the “cost”. The bankers are robbing us in a more creative way.
[/quote]
And I was just pointing out that your assertion is false on its face. Some costs are associated with the things you noted. Of course an aspirin doesn’t cost $40. But that’s only a small piece of total medical costs.
///
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/////.
You said “Exaggeration works fine in comedy, it has no place in rhetoric.” Both I and Socrates disagree, comedy and absurdity are essential in reductio ad absurdum arguments. You know Socratic Dialog?
And since the $40 dollar aspirin caught your attention, let me try another absurd cost. $10,000/day for a hospital stay. I can stay at the best hotel in a great room for $1000/day. It follows that the other $9000 is coming from something other than physical surroundings – bed, room, food, etc. The nurse I share with 50 other patients, and the 3 doctors I share with the same 50 patients also have salaries. Say their total salary is $700,000 per year (loaded cost). Divide $700K by 240 working days, then divide by 50 patients/day and you are left with $58.33/day of labor cost for my day in the hospital.
You can double the salaries, cut the number of patients in half, reduce the work days to 200 and you are still left with only $280/day. Even cut the cost in half to $5,000/day and you are still left with an un-explained $4000-$8000/day. Do the cuts again and you are still at only $560/day.
And this doesn’t even consider the $40 aspirin, nor the $50 blanket. What sort of magic does GAAP have to explain this sort of disconnect in price vs. traditional expense items – perhaps it is some other mark to fantasy type of accounting or SPV that accounts for the “hidden” costs.
February 1, 2011 at 8:03 AM in reply to: OT: No worries folks, federal debt is now under control #660518bubba99
Participant[quote=SK in CV][quote=bubba99]
I read your response, and I have to ask “did you ever take accounting or finance?’ and if you did, did you fail the course?.So your wife is a health care provider with no embedded cost. You missed the point. Hospitals do have “big” capital costs. Physicians are not the big driver of health care costs. Hospitals, and equipment are.
Using your words “nonsensical”, do you really believe that an aspirin costs $40.00 – now that is nonsensical. Where do you think the cost comes from – the $15.00/hour janitor that cleans up? Or the $200,000/year doctor?. No it comes from capital and lease costs.
Is your first language english? or are your comments based on just being studid?[/quote]
As to accounting and finance, yes. Did quite well. Went on and got a masters degree. Spent most of the last 30 years working as a CPA, consultant (including medical financing consulting), and as an economist.
As to the costs….well, these are your words.
[quote=bubba99]
The expense is coming from huge amounts of embedded capital costs, the interest on those capital expenditures, and profit on those assets. Finance, Insurance and Real Estate (FIRE) is the real driver of medical “Access” cost.The access provider borrows from its huge cash flows to buy equipment and buildings from its non-regulated subsidiary, pays interest to the non-regulated sub, and we get stuck with double the “cost”. The bankers are robbing us in a more creative way.
[/quote]
And I was just pointing out that your assertion is false on its face. Some costs are associated with the things you noted. Of course an aspirin doesn’t cost $40. But that’s only a small piece of total medical costs.
///
////
/////.
You said “Exaggeration works fine in comedy, it has no place in rhetoric.” Both I and Socrates disagree, comedy and absurdity are essential in reductio ad absurdum arguments. You know Socratic Dialog?
And since the $40 dollar aspirin caught your attention, let me try another absurd cost. $10,000/day for a hospital stay. I can stay at the best hotel in a great room for $1000/day. It follows that the other $9000 is coming from something other than physical surroundings – bed, room, food, etc. The nurse I share with 50 other patients, and the 3 doctors I share with the same 50 patients also have salaries. Say their total salary is $700,000 per year (loaded cost). Divide $700K by 240 working days, then divide by 50 patients/day and you are left with $58.33/day of labor cost for my day in the hospital.
You can double the salaries, cut the number of patients in half, reduce the work days to 200 and you are still left with only $280/day. Even cut the cost in half to $5,000/day and you are still left with an un-explained $4000-$8000/day. Do the cuts again and you are still at only $560/day.
And this doesn’t even consider the $40 aspirin, nor the $50 blanket. What sort of magic does GAAP have to explain this sort of disconnect in price vs. traditional expense items – perhaps it is some other mark to fantasy type of accounting or SPV that accounts for the “hidden” costs.
February 1, 2011 at 8:03 AM in reply to: OT: No worries folks, federal debt is now under control #661121bubba99
Participant[quote=SK in CV][quote=bubba99]
I read your response, and I have to ask “did you ever take accounting or finance?’ and if you did, did you fail the course?.So your wife is a health care provider with no embedded cost. You missed the point. Hospitals do have “big” capital costs. Physicians are not the big driver of health care costs. Hospitals, and equipment are.
Using your words “nonsensical”, do you really believe that an aspirin costs $40.00 – now that is nonsensical. Where do you think the cost comes from – the $15.00/hour janitor that cleans up? Or the $200,000/year doctor?. No it comes from capital and lease costs.
Is your first language english? or are your comments based on just being studid?[/quote]
As to accounting and finance, yes. Did quite well. Went on and got a masters degree. Spent most of the last 30 years working as a CPA, consultant (including medical financing consulting), and as an economist.
As to the costs….well, these are your words.
[quote=bubba99]
The expense is coming from huge amounts of embedded capital costs, the interest on those capital expenditures, and profit on those assets. Finance, Insurance and Real Estate (FIRE) is the real driver of medical “Access” cost.The access provider borrows from its huge cash flows to buy equipment and buildings from its non-regulated subsidiary, pays interest to the non-regulated sub, and we get stuck with double the “cost”. The bankers are robbing us in a more creative way.
[/quote]
And I was just pointing out that your assertion is false on its face. Some costs are associated with the things you noted. Of course an aspirin doesn’t cost $40. But that’s only a small piece of total medical costs.
///
////
/////.
You said “Exaggeration works fine in comedy, it has no place in rhetoric.” Both I and Socrates disagree, comedy and absurdity are essential in reductio ad absurdum arguments. You know Socratic Dialog?
And since the $40 dollar aspirin caught your attention, let me try another absurd cost. $10,000/day for a hospital stay. I can stay at the best hotel in a great room for $1000/day. It follows that the other $9000 is coming from something other than physical surroundings – bed, room, food, etc. The nurse I share with 50 other patients, and the 3 doctors I share with the same 50 patients also have salaries. Say their total salary is $700,000 per year (loaded cost). Divide $700K by 240 working days, then divide by 50 patients/day and you are left with $58.33/day of labor cost for my day in the hospital.
You can double the salaries, cut the number of patients in half, reduce the work days to 200 and you are still left with only $280/day. Even cut the cost in half to $5,000/day and you are still left with an un-explained $4000-$8000/day. Do the cuts again and you are still at only $560/day.
And this doesn’t even consider the $40 aspirin, nor the $50 blanket. What sort of magic does GAAP have to explain this sort of disconnect in price vs. traditional expense items – perhaps it is some other mark to fantasy type of accounting or SPV that accounts for the “hidden” costs.
February 1, 2011 at 8:03 AM in reply to: OT: No worries folks, federal debt is now under control #661260bubba99
Participant[quote=SK in CV][quote=bubba99]
I read your response, and I have to ask “did you ever take accounting or finance?’ and if you did, did you fail the course?.So your wife is a health care provider with no embedded cost. You missed the point. Hospitals do have “big” capital costs. Physicians are not the big driver of health care costs. Hospitals, and equipment are.
Using your words “nonsensical”, do you really believe that an aspirin costs $40.00 – now that is nonsensical. Where do you think the cost comes from – the $15.00/hour janitor that cleans up? Or the $200,000/year doctor?. No it comes from capital and lease costs.
Is your first language english? or are your comments based on just being studid?[/quote]
As to accounting and finance, yes. Did quite well. Went on and got a masters degree. Spent most of the last 30 years working as a CPA, consultant (including medical financing consulting), and as an economist.
As to the costs….well, these are your words.
[quote=bubba99]
The expense is coming from huge amounts of embedded capital costs, the interest on those capital expenditures, and profit on those assets. Finance, Insurance and Real Estate (FIRE) is the real driver of medical “Access” cost.The access provider borrows from its huge cash flows to buy equipment and buildings from its non-regulated subsidiary, pays interest to the non-regulated sub, and we get stuck with double the “cost”. The bankers are robbing us in a more creative way.
[/quote]
And I was just pointing out that your assertion is false on its face. Some costs are associated with the things you noted. Of course an aspirin doesn’t cost $40. But that’s only a small piece of total medical costs.
///
////
/////.
You said “Exaggeration works fine in comedy, it has no place in rhetoric.” Both I and Socrates disagree, comedy and absurdity are essential in reductio ad absurdum arguments. You know Socratic Dialog?
And since the $40 dollar aspirin caught your attention, let me try another absurd cost. $10,000/day for a hospital stay. I can stay at the best hotel in a great room for $1000/day. It follows that the other $9000 is coming from something other than physical surroundings – bed, room, food, etc. The nurse I share with 50 other patients, and the 3 doctors I share with the same 50 patients also have salaries. Say their total salary is $700,000 per year (loaded cost). Divide $700K by 240 working days, then divide by 50 patients/day and you are left with $58.33/day of labor cost for my day in the hospital.
You can double the salaries, cut the number of patients in half, reduce the work days to 200 and you are still left with only $280/day. Even cut the cost in half to $5,000/day and you are still left with an un-explained $4000-$8000/day. Do the cuts again and you are still at only $560/day.
And this doesn’t even consider the $40 aspirin, nor the $50 blanket. What sort of magic does GAAP have to explain this sort of disconnect in price vs. traditional expense items – perhaps it is some other mark to fantasy type of accounting or SPV that accounts for the “hidden” costs.
February 1, 2011 at 8:03 AM in reply to: OT: No worries folks, federal debt is now under control #661591bubba99
Participant[quote=SK in CV][quote=bubba99]
I read your response, and I have to ask “did you ever take accounting or finance?’ and if you did, did you fail the course?.So your wife is a health care provider with no embedded cost. You missed the point. Hospitals do have “big” capital costs. Physicians are not the big driver of health care costs. Hospitals, and equipment are.
Using your words “nonsensical”, do you really believe that an aspirin costs $40.00 – now that is nonsensical. Where do you think the cost comes from – the $15.00/hour janitor that cleans up? Or the $200,000/year doctor?. No it comes from capital and lease costs.
Is your first language english? or are your comments based on just being studid?[/quote]
As to accounting and finance, yes. Did quite well. Went on and got a masters degree. Spent most of the last 30 years working as a CPA, consultant (including medical financing consulting), and as an economist.
As to the costs….well, these are your words.
[quote=bubba99]
The expense is coming from huge amounts of embedded capital costs, the interest on those capital expenditures, and profit on those assets. Finance, Insurance and Real Estate (FIRE) is the real driver of medical “Access” cost.The access provider borrows from its huge cash flows to buy equipment and buildings from its non-regulated subsidiary, pays interest to the non-regulated sub, and we get stuck with double the “cost”. The bankers are robbing us in a more creative way.
[/quote]
And I was just pointing out that your assertion is false on its face. Some costs are associated with the things you noted. Of course an aspirin doesn’t cost $40. But that’s only a small piece of total medical costs.
///
////
/////.
You said “Exaggeration works fine in comedy, it has no place in rhetoric.” Both I and Socrates disagree, comedy and absurdity are essential in reductio ad absurdum arguments. You know Socratic Dialog?
And since the $40 dollar aspirin caught your attention, let me try another absurd cost. $10,000/day for a hospital stay. I can stay at the best hotel in a great room for $1000/day. It follows that the other $9000 is coming from something other than physical surroundings – bed, room, food, etc. The nurse I share with 50 other patients, and the 3 doctors I share with the same 50 patients also have salaries. Say their total salary is $700,000 per year (loaded cost). Divide $700K by 240 working days, then divide by 50 patients/day and you are left with $58.33/day of labor cost for my day in the hospital.
You can double the salaries, cut the number of patients in half, reduce the work days to 200 and you are still left with only $280/day. Even cut the cost in half to $5,000/day and you are still left with an un-explained $4000-$8000/day. Do the cuts again and you are still at only $560/day.
And this doesn’t even consider the $40 aspirin, nor the $50 blanket. What sort of magic does GAAP have to explain this sort of disconnect in price vs. traditional expense items – perhaps it is some other mark to fantasy type of accounting or SPV that accounts for the “hidden” costs.
January 31, 2011 at 2:55 PM in reply to: OT: No worries folks, federal debt is now under control #660217bubba99
Participant[quote=SK in CV][quote=bubba99]Health insurance is a mis-nomer. Fire insurance is “insurance”, health care is not. In your neighborhood, most have fire insurance, and few if any will actually place a claim for a fire – this is the definition of insurance.
Health care is “access”. Almost everyone in a healthcare pool will require some “health care” during the premium period. The penality for not having access is rates 50% to 100% higher for direct pay medical care.
The expense is coming from huge amounts of embedded capital costs, the interest on those capital expenditures, and profit on those assets. Finance, Insurance and Real Estate (FIRE) is the real driver of medical “Access” cost.
The access provider borrows from its huge cash flows to buy equipment and buildings from its non-regulated subsidiary, pays interest to the non-regulated sub, and we get stuck with double the “cost”. The bankers are robbing us in a more creative way.
A non-profit hospital does not mean that no one makes money, only that the expenses equal the huge amounts of revenue. The more capital, the more non-profit![/quote]
This is nonsense. Beginning with the very first sentence.
Health insurance is insurance. It is built on a model significantly different than life or professional liability or auto insurance. It is still insurance.
Health care is health care. Access is access. One is dependent on the other. That does not make them the same thing.
The expense comes from a huge variety of sources. My wife is a health care provider. She has no embedded costs. No capital costs. No interest. Her insurance is under $500 a year. For most physicians, those costs are only small price drivers. Embedded costs, capital costs, interest and insurance are only some of the costs of providing health care. Some providers and some health care costs are affected by those things. As others are affected by huge research costs. And some operate with virtually no costs at all.
A non-profit hospital does not mean that expenses equal the huge amount of revenue. That is both an absurd and non-sensical assertion. Sometimes they will make money, sometimes lose. And while non-profit hospitals are subject to hundreds, thousands of regulations, many of them identical to for-profit facilities, the main distinction between for profit and non-profit, is that non-profit does not have owners that will ever reap financial benefit from profit. There are no shareholders.[/quote]
I read your response, and I have to ask “did you ever take accounting or finance?’ and if you did, did you fail the course?.
So your wife is a health care provider with no embedded cost. You missed the point. Hospitals do have “big” capital costs. Physicians are not the big driver of health care costs. Hospitals, and equipment are.
Using your words “nonsensical”, do you really believe that an aspirin costs $40.00 – now that is non-sensical. Where do you think the cost comes from – the $15.00/hour janitor that cleans up? The $200,000/year doctor?. No it comes from capital and lease costs.
The use of the word “insurance” for a product that provides 100% of is policy holders a claim each year is probably not insurance. Not like car, fire, professional liability or any other type of insurance product I can think of. Call it insurance if it helps you feel better about what your wife gets paid by health carriers, but don’t confuse it with a product that expects a nominal set of losses in a actuarial group of policy holders. It buys access to doctors, and hospital facilities at much lower rates than I can get as an un-insured individual.
But if your wife took out a loan from you to buy MRI equipment and pro-rated it out to each patient visit, you too would be part of the FIRE problem. Again for the financially challenged, a non-profit does not need to show a profit to make money for its many lenders and vendors. The costs and profits are transfered to the leases for equipment and buildings.
Doctors are not the drivers behind the “huge” increases in medical care costs. My doctors biggest expense is filing and refiling the many “insurance” claims and paperwork necessary to get paid for patient “access”.
January 31, 2011 at 2:55 PM in reply to: OT: No worries folks, federal debt is now under control #660280bubba99
Participant[quote=SK in CV][quote=bubba99]Health insurance is a mis-nomer. Fire insurance is “insurance”, health care is not. In your neighborhood, most have fire insurance, and few if any will actually place a claim for a fire – this is the definition of insurance.
Health care is “access”. Almost everyone in a healthcare pool will require some “health care” during the premium period. The penality for not having access is rates 50% to 100% higher for direct pay medical care.
The expense is coming from huge amounts of embedded capital costs, the interest on those capital expenditures, and profit on those assets. Finance, Insurance and Real Estate (FIRE) is the real driver of medical “Access” cost.
The access provider borrows from its huge cash flows to buy equipment and buildings from its non-regulated subsidiary, pays interest to the non-regulated sub, and we get stuck with double the “cost”. The bankers are robbing us in a more creative way.
A non-profit hospital does not mean that no one makes money, only that the expenses equal the huge amounts of revenue. The more capital, the more non-profit![/quote]
This is nonsense. Beginning with the very first sentence.
Health insurance is insurance. It is built on a model significantly different than life or professional liability or auto insurance. It is still insurance.
Health care is health care. Access is access. One is dependent on the other. That does not make them the same thing.
The expense comes from a huge variety of sources. My wife is a health care provider. She has no embedded costs. No capital costs. No interest. Her insurance is under $500 a year. For most physicians, those costs are only small price drivers. Embedded costs, capital costs, interest and insurance are only some of the costs of providing health care. Some providers and some health care costs are affected by those things. As others are affected by huge research costs. And some operate with virtually no costs at all.
A non-profit hospital does not mean that expenses equal the huge amount of revenue. That is both an absurd and non-sensical assertion. Sometimes they will make money, sometimes lose. And while non-profit hospitals are subject to hundreds, thousands of regulations, many of them identical to for-profit facilities, the main distinction between for profit and non-profit, is that non-profit does not have owners that will ever reap financial benefit from profit. There are no shareholders.[/quote]
I read your response, and I have to ask “did you ever take accounting or finance?’ and if you did, did you fail the course?.
So your wife is a health care provider with no embedded cost. You missed the point. Hospitals do have “big” capital costs. Physicians are not the big driver of health care costs. Hospitals, and equipment are.
Using your words “nonsensical”, do you really believe that an aspirin costs $40.00 – now that is non-sensical. Where do you think the cost comes from – the $15.00/hour janitor that cleans up? The $200,000/year doctor?. No it comes from capital and lease costs.
The use of the word “insurance” for a product that provides 100% of is policy holders a claim each year is probably not insurance. Not like car, fire, professional liability or any other type of insurance product I can think of. Call it insurance if it helps you feel better about what your wife gets paid by health carriers, but don’t confuse it with a product that expects a nominal set of losses in a actuarial group of policy holders. It buys access to doctors, and hospital facilities at much lower rates than I can get as an un-insured individual.
But if your wife took out a loan from you to buy MRI equipment and pro-rated it out to each patient visit, you too would be part of the FIRE problem. Again for the financially challenged, a non-profit does not need to show a profit to make money for its many lenders and vendors. The costs and profits are transfered to the leases for equipment and buildings.
Doctors are not the drivers behind the “huge” increases in medical care costs. My doctors biggest expense is filing and refiling the many “insurance” claims and paperwork necessary to get paid for patient “access”.
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