Steven Lipstein on Hospitals
EconTalk
00:00
What's the Meaning of a Discount?
Hospitals by and large need to generate about a 3% operating margin. When you take that together with their non-cash expenses like depreciation, you'll end up with about 9% to 10%. Very few payers actually pay less price if any. The system doesn't make much sense, which is why at this particular point in time, the prospect of trying to reform this system makes a whole lot of sense to a lot of people.
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