The hospital finance misconception plaguing C-suites

Healthcare systems are struggling due to increasing costs and insufficient reimbursements. Unlike typical businesses, hospitals cannot adjust prices due to pre-negotiated rates and government-mandated pay structures. Non-profit hospitals also bear the burden of serving all patients, including those without the ability to pay. If left purely to market forces, many predict that services would be cut and hospitals would close due to the high operational costs and complex reimbursement systems. Small incremental changes have proved unsuccessful in significantly improving outcomes.