The Business Journal reported last week on hospital system profits. In case you missed it, here’s
a re‐cap of their 3rd quarter results:
- Aurora’s operating income was less than 1% of revenues
- Froedtert’s income was only about 4.3% of revenues
- Pro‐Health earned 5%
- Wheaton actually lost money
These margins are significantly lower than just a few years ago.
Under provisions of the Affordable Care Act, health insurer margins are also tightly regulated.
And yet, premiums continue to rise.
The cost of health care represents 85% or more of every health insurance premium dollar.
Insurance “reform” has focused on the 15% of premiums that goes toward administrative
OK. Now let’s get started on the real work.