Can Hospitals Survive On Medicaid Alone? Of Course Not Dummy.

I have blogged extensively in the past about what Obamacare will mean to your access to hospital care.  And today, I saw one slide during a presentation that summed it up in two words.  Obamacare is nothing more than  fairytale economics.  How is that you say Happy?  I've previously linked to a great reference on how hospitals get paid by Medicare.  It's essentially the same process for Medicaid, only worse.  It turns out that the actual  hard cash cost of the plastic and steel  used in a total joint replacement is about $10,000.   That's the cost just to buy the hardware to put in the patient. 

How much does Medicaid pay for the entire hospital stay (DRG) for a total joint replacement?  About $8,000.  In other words, every  Medicaid patient that hospitals admit for total joint replacements cost them $2,000 to the bottom line (not including the actual cost of all the actual care delivered in nursing, supplies, room rent etc...).  I had no idea it was that bad.   If you showed up at work and your employer sent you a bill for $200 for your day at the office,  how long do you think you'd show up for work? 

Americans just do not understand how terrible the whole economic basis of Obamacare really is.  You cannot drive millions of people into Medicaid payroll, then  take away the hospital disproportionate payment system and then call it even.   It will only be a matter of time before
  • Hospitals shut their doors for good in a massive geographic wave of consolidation. 
  • Hospitals stop accepting Medicaid and Medicaid and abandon the American people for good.
  • Hospitals close their emergency departments and open up urgent care centers in the suburbs  allowing for an invitation only business model into their hospital walls.
  • Hospitals decrease their hours of operation
  • Hospitals stop offering specific disease related health care services.
  • Doctors stop training to tackle those medical conditions (think primary care going viral)
You think this recession is bad.  Wait until Obamacare's real story starts to unfold in 2014. You can't even imagine how bad the health care driven recession is going to get.     The government is pulling the biggest fast one on you in the history of entitlement madness.    Medicaid is bankrupt.  It's underfunded and as the only racist defacto health care option  without choice for millions of poor blacks and Hispanics, it's not even insurance for those who accept their payment.  I would categorize the payment as more of an insult.

For those of you who think Medicare for all is the solution, think again.  Medicare is right behind  Medicaid as a colossal failure of sound economic principles.  Instead of telling the masses it's time to face reality and expect less and pay more, they've decided to provide a smorgasbord of FREE=MORE

So what is the solution?  There is none.   At least none that has political capital.   The end game is already set in stone.  With a 100 trillion dollar storm on the horizon, we will never be able to pay for what we promise.  Think America can't default.  Think again.  

You really only have to take a step back and ask yourself one simple question:
Should I trust a government that pays me less for my service than it costs me to provide.
If it sounds to good to be true, it probably is.  A government that promises everything will end up delivering on nothing.  It sounds too good to be true, because it is. 

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