Not-for-profit Scare

This just in.   A Moody’s Investors report states that “the outlook for the U.S. not-for-profit healthcare sector remains negative as new uncertainties over Medicare and Medicaid funding and the potential for political gridlock onhealthcare reform could worsen the low growth in revenue”.  There are three reasons for this:

  • One is the pressure to acquire physician practices and other providers, in order to remain competitive, which may require raising capital.
  • The second risk is the increasing need to acquire or work with insurers to transition from getting paid each time a patient is treated to new reimbursement methods.
  • The third risk is the U.S. Supreme Court’s decision on the healthcare reform law that allows states to opt out of enrolling more people under Medicaid.

So, to summarize, these hospitals need more Medicaid patients but won’t get them, they also don’t know how to get paid in a “moving target” systems that pays for unproven quality, and lastly, they need to buy doctors but are having difficulty (because no one wants to work there).  Can you smell future bailout?  And capitalism is bad?

And, by the way, CEOs and other administrators keep growing and getting paid exorbitant fees at these not-for-profits.  I am not sure why that isn’t mentioned.

Douglas Farrago MD

Douglas Farrago MD is a full-time practicing family doc in Forest, Va. He started Forest Direct Primary Care where he takes no insurance and bills patients a monthly fee. He is board certified in the specialty of Family Practice. He is the inventor of a product called the Knee Saver which is currently in the Baseball Hall of Fame. The Knee Saver and its knock-offs are worn by many major league baseball catchers. He is also the inventor of the CryoHelmet used by athletes for head injuries as well as migraine sufferers. Dr. Farrago is the author of four books, two of which are the top two most popular DPC books. From 2001 – 2011, Dr. Farrago was the editor and creator of the Placebo Journal which ran for 10 full years. Described as the Mad Magazine for doctors, he and the Placebo Journal were featured in the Washington Post, US News and World Report, the AP, and the NY Times. Dr. Farrago is also the editor of the blog Authentic Medicine which was born out of concern about where the direction of healthcare is heading and the belief that the wrong people are in charge. This blog has been going daily for more than 15 years Article about Dr. Farrago in Doximity Email Dr. Farrago – [email protected] 

  1 comment for “Not-for-profit Scare

  1. Pat
    August 17, 2012 at 1:27 pm

    While the individuals working for a non-profit make an income, there is somehow an extra veneer of nobility attached to the lable “non-profit”? Why? A non-profit entity is by definition, at least a partial exteniosn of whatever government supports it. That any investor should care about a government enterprise is precisely what collpased the real estate market.

    Of course adminstrators at non-profits keep getting big payouts – they don’t have to show a …profit!! The entire NFP industry is by and large a method for wealth redistribtuion and money laundering, all under the presuption of compassion and stinking altruism. The biggest liars are all the supporters of NFP’s from which they derive their own personal, what shall we say, “gains”?

    Imagine the fun we’d all have with not-for-profit plumbers, or NFP grocers.

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