English: Diagram showing that it is possible that a firm in perfect competition makes an abnormal profit, if P > min(ATC). In the long run, however, only normal profits will be made, since P will equal min(ATC) exactly. (Photo credit: Wikipedia)
That was the price listed on a certificate from St. Marys Hospital in Saginaw, Michigan circa 1883.
There were restrictions, no care for drunkenness and you were not admitted if you had a communicable disease. Patients were cared for in wards and disease could spread rapidly under those conditions.
The story says the fee translates into about $116.00 in today’s dollars. Any chance we could get a year’s hospital coverage today for $116.00?
No sir, in today’s economic environment hospitals are no longer in business to aid in the healing of the sick and injured. Hospitals today are in business to make a profit. This for profit environment began way back when Nixon was president and a member of his cabinet came up with the idea of health care for profit. It has grown immensely over the years and of course the completion is fierce with mergers and advertising completing the picture.
The result of this privatization-for profit mode is an inflation busting increase in health care costs for all. This smacks in the face of those who profess to the free market philosophy of competition drives down prices.
Another area where for profit enterprises have driven up prices beyond inflation is education, check out the current tuition rates in any college, private or state funded.
Those on the right are pushing for more privatization of schools, Social Security and even prisons. As the two examples above show us, privatization does not bode well for the hard-working middle class but does seem to provide a tidy profit for the few and the mighty.
Think about it my friends and consider joining me in some monthly midweek chats coming soon. 🙂
randomthoughts 