1/08/2008

Healthcare services profitability down

'The industry registered a surplus of $918m...but profitability and cost effectiveness ...decreased by 0.5% each.' Taking a number like this will quickly tell a story of ineffectiveness and the need to raise charges to improve profitability. Heck, how can profitability and cost effectiveness go up if rental and salary keep going up? Everyone is demanding higher pay, higher rental or just push them up and claim that the operation is not profitable. Then simply charge the higher cost to the consumers. This is a free economy running under a free wheeling supply and demand principle. The only people who are suffering are the consumers who just have to pay and pay.

1 comment:

Matilah_Singapura said...

> This is a free economy running under a free wheeling supply and demand principle.<

That's not true. An economy is deemed to be free when when it runs on the principles of freedom of individual association, the freedom to privately own the means of production, where individual self-ownership and private property rights are respected, and there is a minimal amount of government interference.

The principle of supply and demand is irrelevant. Even hampered, command and controlled economies obey the (natural) laws of supply and demand.

> Taking a number like this will quickly tell a story of ineffectiveness and the need to raise charges to improve profitability. <

Absolutely not! What is needed is to trim the fat, improve systems and sack the useless bums who are free-riding. Also outsourcing might improve things.

Bear in mind that healthcare services are in effect, a cartel, protected by government. If they allowed more competition - e.g. more natural therapy, included overseas health providers (as competition), and restructure internally like give nurses more authority to diagnose and prescribe - thus decreasing the demand placed on doctors... and such like.

The idea is to get the cost to the consumer DOWN, as well as increase profitability and efficiency. That's what good business practice is all about. By doing so, one ensures the greater possibility of long term survival.