Update: McCain Selects Gov. Sarah Palin as Running Mate

[GhettoDogAllStars]

Originally Posted by Schneed10

Then you've drastically misunderstood me. Hospitals do try to make a profit, it's just that many simply can't in this environment of rising costs. So their sole goal becomes to try to simply stay open.

Either way it's the same goal: make money for profit or make money to stay open. Either way the goal is to reach a money target.

It's just hard for me to believe a hospital would be satisfied breaking even, and keep their doors open in that condition -- especially in this environment of rising costs.

[Schneed10]

Originally Posted by GhettoDogAllStars

It's just hard for me to believe a hospital would be satisfied breaking even, and keep their doors open in that condition -- especially in this environment of rising costs.

You're still not getting it. Let me try it differently:

Hospitals aren't happy breaking even. They want a profit at all times. But the fact is it's impossible for many of them, so they move heaven and earth just to try to break even (some succeed, some fail).

But are you sure you understand what breaking even means? Breaking even means you cover all your costs and you have nothing left over. That means you manage to pay the ever rising malpractice premiums, you manage to pay for all the drugs and supplies which go higher and higher, you manage to pay all your employees and docs, and you bring in just enough revenue to cover all of this. Breaking even means you kept your operation running, cared for all your patients and gave them a good medical experience, and didn't have to lay anybody off. It's a very good thing (relatively speaking) for a hospital to break even these days.

[GhettoDogAllStars]

Originally Posted by Schneed10

You're still not getting it. Let me try it differently:

Hospitals aren't happy breaking even. They want a profit at all times. But the fact is it's impossible for many of them, so they move heaven and earth just to try to break even (some succeed, some fail).

If they can't make a profit they would close. Why on earth would a business stay open if it's "impossible" to make a profit?

[Schneed10]

Originally Posted by GhettoDogAllStars

If they can't make a profit they would close. Why on earth would a business stay open if it's "impossible" to make a profit?

Many are indeed closing for that exact reason. In Philadelphia, we recently lost Medical College of Pennsylvania, Parkview Medical Center, and Temple University Children's Medical Center just to name a few.

Others that aren't actually closing are shedding programs that lose money, most notably OB/GYN. There are now only 2 hospitals in North Philly that deliver babies. Five years ago, there were 11.

The hospitals still standing are the ones that either manage to break even (or better) or continue to believe that they can break even with some programmatic changes and key strategic investments (which is what I do).