Small percentage, but …
An interesting article (“Subsidized then scrutinized,” Aug. 16, p. 6). There are many facets of America’s healthcare system contributing to its success as well as its current problems.
I would venture to say your article points to one of the problems. The last lines note the salary of $50 million is but a small percentage of a billion-dollar organization. This is true. This was also true of the auto industry, financial industry and a few other industries whose bubbles recently burst causing our current recession. I’ll let the readers reach their own conclusion regarding that similarity.
As the administrator of a small family practice of six providers and 25 employees, of which 20 receive employer-provided medical benefits, let’s look at say half of that $50 million—after all the executive is entitled to some pay. First, as an employer, our insurance premiums have gone up double digits for the past 10-plus years. Our payments from insurance companies have gone up 1% to 2% per year and only if I diligently negotiate every year, as typically insurance companies want me to sign two-year agreements.