[conductr]

I spent a lot of time in healthcare finance and across most medical service industries the Medicare rate is actually not a loss. It’s a common thing said as it’s not super profitable, but it’s usually not a huge loss. It’s pretty close to what the cost of care should be. It just doesn’t give the extra padding for extremely fancy clinics, hospitals, admin and executive compensation, and often PE investor margin expectations. It’s usually slightly positive on contribution margin and given the volume of Medicare in the mix there’s enough flow through to cover reasonable overhead and perhaps slim margins. But, whenever I see a claim that the true cost of service is 10x over the Medicare rate, it’s a huge red flag there’s some financial shenanigans at play. Saying that Medicare is a loss, leaves the impression that it leaves a huge hole to fill so other payers need to pick up the bag in a huge way. This kind of lazy analysis blindly perpetuates this misconception. If they wanted to add value here, they should have performed a “what should an ambulance ride cost?” type analysis. You have to really strip out costs that are unneeded, excessive, and account for profit margin similarly. There’s no way $13k makes any sense for the service described. We need sensible cost controls in this industry. The industry hands these people blank checks when they can hide behind out of network, etc. It’s still captive price gouging.

[Esophagus4]

[if the article’s analysis is true] cost controls would reduce the supply of ambulances, since the article claims Medicare actually is a loss.

You have claimed it isn’t, but you haven’t really provided much evidence other than “there’s no way that’s true, trust me, I used to work somewhere in healthcare finance”

[conductr]

Thats fine, I'm a passerby making a comment on their work on a platform that they may not even be aware of. If you look closer I’ve done more than they have by simply raising the concern and I’m not authoring an article attempting to educate people on the industry. I think it’s perfectly fine to question someone’s assertion based on experience alone. Basically you’ll have to do more to convince me what you’re saying is true is what I’m saying. That’s the same feedback a teacher would give a student on their homework. It takes data that I don’t have to do the analysis which is probably also why they didn’t do it. But I don’t think it’s completely off the mark to mention that I’ve been an insider at multiple healthcare service companies that like to claim they lose money on Medicare yet they opt to accept Medicare patients. When we consider denying Medicare we realize they are such a large part of the mix that they allow us to be as profitable as we are. It’s almost always a misconception of what “losing money” means. Price gouging the few patients that can afford it, is only profitable if all your expenses are already covered and economies of scale are at play, which is what Medicare is good for.