One thing that many people overlook is that most insurance companies are for-profit corporations that aren't ashamed to admit that, whereas most hospitals claim to be non-profit organizations that hold themselves out to be charities and shamelessly beg for contributions from patients whose insurance companies have already paid the hospitals handsomely for services provided.
When I had my gall bladder removed, the hospital was paid roughly $6K / hour for the use of an operating room for about 1.75 hours. There were adhesions that my surgeon (who happened to be a friend of mine) patiently scraped away rather than cutting me open, but which apparently increased the complexity of the surgery -- and the cost-per-minute of the O.R.
That bill was just for the O.R., by the way. It didn't include the absurdly inflated costs for everything else ranging from socks with the rubbery squiggles that they made me wear (something like $40.00 -- for a pair of socks), to the $25.00 Vicodin tablet they gave me to "hold me over" until I could fill the prescription (which cost something like $8.00 for the whole bottle at my local pharmacy). Neither does it count the $400.00 blood tests, the $135.00 pre-op "physical" by an N.P. who barely looked at me, and so forth, and so on.
But whatever. The hospital and the insurance company had their arrangement, and they worked things out accordingly. I was a bit miffed, however, when I started getting solicitations from the hospital to contribute to their various fund-raising drives, which increased exponentially after I made the mistake of sending a contribution in response to the first request. Holy crap, what a mistake that was. Once you make a contribution, they never stop asking. They call you on the phone, send you snail mail, send you email... Hell, they practically climb in the window and pull you out of the bed at night to get you to write them a check.
Now... if the hospital really was a "non-profit" organization in more than name, if they hadn't charged me $40.00 for a pair of socks, if they hadn't marked up a Vicodin tablet by roughly 10,000 percent, if they hadn't charged me $400.00 for the same blood tests that Quest will do for $65.00, then maybe it wouldn't have been so annoying. But they did, and it was.
Now let's add some insult to injury and ponder the fact that the vast majority of former patients at whom these "non-profit" hospitals aim their appeals have incomes that are mere fractions of those of the hospitals' CEOs, Administrators, or whatever else the head honchos at the top call themselves; so not only are the patients being squeezed and guilted for contributions after having charged $25.00 for a $0.25 pill, but they're also being asked to subsidize the incomes of executives who, in some cases, make more in a year than they themselves will in 10 years, or 20, or maybe their entire lives.
Non-profit can be very profitable, indeed.
-Rich