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<blockquote data-quote="SlugSlinger" data-source="post: 3711788" data-attributes="member: 7248">You want the government to run healthcare.&nbsp; That image is the government whether you like it or not.And manipulating operating costs is something that can be done under the highest scrutiny.&nbsp; The issue is with auditing cost is who determines the amount of appropriate costs?&nbsp; Usually it&#039;s management that is not in touch with the weeds around the costs, as in the details driving the costs.&nbsp; The staff does not control cost, management controls costs.It sounds like you think, and I may be wrong, but someone is going to set a threshold of costs not to exceed based on some factors that management decides is &quot;fare&quot;.&nbsp; When that happens, costs are going to be controlled, as you want and believe is appropriate. When costs are controlled its directly related to labor or supplies.&nbsp; Supplies are controlled by management, labor by individuals who can leave for more lucrative compensation.&nbsp; So good luck thinking that cost controls are going to improve or even maintain the healthcare quality.&nbsp; Why do you think an aspirin is $8?&nbsp; It&#039;s called allocating overhead to the direct costs.&nbsp; The actual single aspirin&#039;s direct costs is $.25, however, when you include the complete supply chain internally and externally to get that aspirin to the patient, it&#039;s price explodes exponentially.&nbsp; And another note, profit is used to expand business, good or bad.&nbsp; It does drive cost up, but it also creates innovation.&nbsp; Take out profit and innovation hits a brick wall.</blockquote>

[QUOTE="SlugSlinger, post: 3711788, member: 7248"] You want the government to run healthcare. That image is the government whether you like it or not. And manipulating operating costs is something that can be done under the highest scrutiny. The issue is with auditing cost is who determines the amount of appropriate costs? Usually it's management that is not in touch with the weeds around the costs, as in the details driving the costs. The staff does not control cost, management controls costs. It sounds like you think, and I may be wrong, but someone is going to set a threshold of costs not to exceed based on some factors that management decides is "fare". When that happens, costs are going to be controlled, as you want and believe is appropriate. When costs are controlled its directly related to labor or supplies. Supplies are controlled by management, labor by individuals who can leave for more lucrative compensation. So good luck thinking that cost controls are going to improve or even maintain the healthcare quality. Why do you think an aspirin is $8? It's called allocating overhead to the direct costs. The actual single aspirin's direct costs is $.25, however, when you include the complete supply chain internally and externally to get that aspirin to the patient, it's price explodes exponentially. And another note, profit is used to expand business, good or bad. It does drive cost up, but it also creates innovation. Take out profit and innovation hits a brick wall. [/QUOTE]

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