
Why Single Payer, Part 3: Cash Flow in the Healthcare Industry
Series: Why Single Payer Healthcare Series One
From: Miles Eddy
Length: 00:04:41
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Piece Description
Many physician services and hospitals are going broke! With Medicaid, they loss money with every patient that walks through the door, with Medicare they barely break even, and with the uninsured they basically write it off. Dr. Rocky White says, "We have to tap into the insurance industry in order to make enough money to keep our doors open, and you guys are the ones that are shouldering that bill. Because basically the insurance company has this army of bureaucrats trying to spend money to keep from paying us, and we have to hire an army of bureaucrats to try and get the money out of them. Twenty-six percent of our overhead was spent just on bureaucrats, people in the business office trying to deal with the insurance company. Not with Medicaid and Medicare, with the insurance companies." It's businesses and employees with health insurance that pays enough to offset hospital losses from Medicaid and self-pay. But with fewer companies offering health insurance to their employees, the number of people with no insurance continues to rise, directly affecting the quality and availability of healthcare for everyone!
Broadcast History
Aired Jan. 17th, 2006 on KRZA 88.7FM Alamosa, Colorado
Transcript
TRANSCRIPT
MILES
Healthcare is often thought of as a basic right in this country. However, everything cost money, and when capitalism is applied to taking care of our health, things can quickly get out of control. I?m Miles Eddy, and we now continue our discussion with Russ Johnson, CEO of the Alamosa Hospital, and Dr. Rocky White.
RUSS JOHNSON
In Medicaid, our contract with the state, that every hospital has, is that they will pay us 72% of cost. I don?t mean 72% of our charges, but 72% of our cost. So we know that on Medicaid out-patients we?re going to loss 28% by contract. We have a payment category called self pay, which are folks who don't have insurance and present to us and we get around 11 cents on the dollar for those patients.
MILES
What I'm hearing is you're losing money on Medicaid; you're breaking even on money with Medicare?
RUSS JOHNSON
It's the folk...
Read the full transcript