To: KyrosL who wrote (30464 ) 5/1/2005 1:09:41 PM From: 10K a day Respond to of 306849 >>The insane health care system in the US is, IMO, the biggest problem we are facing. It's a huge impediment to US competitiveness. We are wasting by my estimate 7% of our GDP, which is almost two times our defence budget. Some of our largest companies, like GM and Ford, are in grave danger of going out of business in the next decade because of this insanity. We are importing cars from Ontario, because Canadian workers have a national health care plan, while GM and Ford in the US are burdened with huge health care payment liabilities. And to add insult to injury, they have to pay almost twice as much as national health care systems pay in Europe, Japan, and Canada. << Let me tell u a pretty scary story about 2 business models in the Rehab Industry. 2 rehab clinics in a town of 100,000 people. (actually 7 clinics in town) Clinic Number ONE is hospital based and is entirely dependent on a single doctor and sees 50 patients a day and reimbursed 65 dollars a treatment by workers' compensation 70 dollars per treatment for medicare and 80 dollars per treatment if they lucky enough to have any private insurance patients. One quarter of those patients are MediCal (medicaid) which pays 28 dollars a treatment. The Projected daily revenue (AMOUNT ACTUALLY RECIEVED assuming 100 percent reimbursement based on fee schedules) for CLINIC ONE is 2800 dollars/day. or roughly 56,000 per month. In order to supply that service they have:payroll 22,000 / month. 2 layers of hospital admin personnel 7000/mo FICA/MEDICARE paid by employer 2200/mo WORK COMP 1500/mo rent 7000/ month. Equipment lease 2000/mo phone 1000/mo electric 1000/mo promotional and advertising 1o00/mo cost for PRIVACY act compliance and OSHA et al 1000/mo. Paper clips 500/mo That leaves a profit of roughly 10,000 / mo that trickles up to the one referring doctor and the admin..(and although ilegal essentially to pay the referral source).... that is assumming 100 percent collection based on fee schedule. CLINIC NUMBER 2: Is a small private clinic. Streamlined. Low overhead. Multi tasking staff: that is 1/5th as big as CLINIC 1 and sees Medicaid, Worker's compensation and Private. There patient mix is roughly 1/3 work comp ($65), 1/3 private ($80), 1/3 medicaid ($28). The revenue is 12,000/mo The cost to provide that is: rent 2000 salaries 2500 equipment lease 2500 advertising 3000 phone 500 electric 500 Fee paid for Private and HMO Patients 800/mo FICA MEDICARE AND WORK COMP 300/mo CLINIC 2 IS GOING BROKE. CLINIC ONE JUST HAD THEIR REVENUES CUT IN HALF BY WORK COMP AND LAID OF HALF THEIR STAFF. AND NOW HAS TO MAKE SOME TOUGH DECISIONS TO STAY IN BIZ. NOW THE FEDS WANT TO REDUCE MEDICAID REIMBURSEMENT THAT HASN'T RISEN SINCE THE 1980'S. BUT THEY ASSUME THAT TREATMENT WILL BE PROVIDED FREE AT YOUR LOCAL EMERGENCY ROOM. THE WORLD IS DREAMING. EVERYBODY GO SELL HOUSES AND LET HEALTH CARE GO BUST. THANK U AND AHVE A NICE DAY. CONGRATULATIONS GEORGE. I HOPE IT ALL MAKES U HAPPY.