Wednesday, August 17, 2011

Universal Healthcare with NPO?

From my own little bit of experience as an insider in a non-profit healthcare facility, I was struck by the fact that it seemed as profit-driven as the others. I do believe that non-profit anything in the healthcare field would be the same, whether insurance or whatever. Here's why, and here's where a bit of what I consider corruption comes in: There's a yearly budget just like in a for-profit, and the administrator and top staff try to make the bottom line look great: meet the budget or exceed it--that is, keep costs way down so there's some left over. So where does that excess money go? For patients, you would think. That's their formally-stated mission, their reason-for-being. Nope. It goes into the pockets of the top staff as a bonus for having a great year (at least in some and I presume in most). So that does work the same as the profit motive after all. They can line their own pockets if they keep costs down--even if it hurts patients. Of course they can always tell themselves stuff like "if we cut such and such costs it really helps patients in the long run" or some rationalization like that. So after observing this I'm not sure whether perhaps the profit motive may actually be better and less prone to corruption. Strange thought, but if you've seen this in action... Sure they're audited, but... No, in some ways, the profit motive does keep people on the straight and narrow; there may be more consequences if they play around with the money than there would be in a non-profit. Just a thought. Did you ever read Adam Smith's The Wealth of Nations, explaining why, just why, the profit motive can encourage honorable behavior--good for the wider world the person lives in too? Just a thought, like I said.

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