Get hospitals to justify costs

The editorial on Dec. 29 (“Sacred Heart’s woes point to deeper challenges”) made a valid point that the U.S. health care “system” is broken and needs a major overhaul. Unfortunately, the wrong conclusions were drawn from that fact.

The primary reason Sacred Heart is losing money has nothing to do with low Medicare/Medicaid reimbursement rates, but is caused by the fact that it is no longer a service provider, and instead is a profit center.

As such, one of its moves was to purchase very expensive technology and diagnostic equipment that is redundant and could be replaced by contracting with existing providers. Such equipment is a way of extracting more money out of insurance plans.

Medicare and Medicaid don’t play that game, but for-profit insurance companies can continue to raise rates in a mutual rip-off scheme wherein patients are the victims.

Along the way, the administrative and billing departments of both the hospital and the insurance companies add 20%-30% more cost that provides no health benefit whatsoever.

A well-run single-payer system would put an end to this nonsense and demand that hospitals justify all of their costs. I will feel sorry for Sacred Heart when its executive officers give up their seven-figure salaries and go back to providing service. The Sisters of Providence would be ashamed of what has become of their hospital.

Daniel J. Schaffer, MD

Spokane