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Tasmanian Angel
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Can or does a non-profit company make any money at all?? Confused I mean, you can't really have a company that gets nothing out of the service they provide, can you??

Specifically, I was going through a couple of the candidates plans for universal health care ... and, if I was reading it right, Kucinich basically wants the health care system to be provided by "not-for-profit" companies that would be reimbursed by the government for their services.

He even wants "for-profit" companies to convert to non-profit entities and will help pay for the conversion.

But, who would want to do that? Confused (Again) If I'm understanding this concept, a dr. would charge and get paid for the care he gives, but, would he not actually make the same kind of money he's working now ... since, I'm sure, costs would be controlled?

Could somebody explain to me how this might work? Confused


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Posts: 12458 | Registered: June 09, 2002Reply With QuoteEdit or Delete MessageReport This Post
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quote:
Can or does a non-profit company make any money at all??


Yes, not for profits/non-profits do make money; however, they are required to put the money back into the company, rather than pay any surplus out in the form of dividends.

The best example of not for profits/non-profits would be the majority of hospitals in this country [before for profit/privately owned hospitals can into existence]. They price there services and charge the patients/insurers. Any revenues over the cost of providing the service is put back into the company in the form of reserves or program development.

quote:
If I'm understanding this concept, a dr. would charge and get paid for the care he gives, but, would he not actually make the same kind of money he's working now ... since, I'm sure, costs would be controlled?


Yes, the majority of doctors would make pretty much the same for his/her services; but would not get the quarterly distributions that is profit based.

And, as quiet as it's being kept, if a non-profit system were to be faithfully executed, costs for services would actually drop because profits would no longer be built into the pricing structure of the doctor AND the hospital/practice AND the insurer [with the largest part going to the insurer].

Did you know the largest hard money lenders in america are not banks or mortgage companies; but rather, insurance companies? And, they get this money from the profits on healthcare.
 
Posts: 7276 | Registered: August 15, 2002Reply With QuoteEdit or Delete MessageReport This Post
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