A local business publication recently reported some happy financial news for GlassHospital.
However, if read carefully, the article contains this apparent paradox:
- ER traffic is down.
- Hospital admissions are down.
- Revenue (and profit!) is up!
How can this be?
I mean, if this were a real business, wouldn’t less traffic and fewer ‘units sold’ equal less revenue and lower profits?
Not in Health Care Wonderland.
Welcome to HealthEcon 101. Since I’m no economist (though I live near a famous Chicago School), I’ll do my best to keep it simple: