Friday, March 26, 2010

Hospitals were bribed

I randomly scrolled through the Health Care bill and found this bribe.

The Secretary shall not permit an

6 increase in the number of operating rooms,

7 procedure rooms, and beds for which an ap8

plicable hospital is licensed under clause (i)

9 to the extent such increase would result in

10 the number of operating rooms, procedure

11 rooms, and beds for which the applicable

12 hospital is licensed exceeding 200 percent of

13 the baseline number of operating rooms,

14 procedure rooms, and beds of the applicable

15 hospital.


ITY CAPACITY.—Except as provided in para7

graph (3), the number of operating rooms, proce8

dure rooms, and beds for which the hospital is li9

censed at any time on or after the date of the en10

actment of this subsection is no greater than the

11 number of operating rooms, procedure rooms,

12 and beds for which the hospital is licensed as of

13 such date.

Hospitals can only expand if an un-elected bureaucrat allows it. (Even the bureaucrat is handcuffed after 200%) Hospitals can use their clout with politicians and bureaucrats to thwart competition. (Imagine AB-InBev promoting a similar board. The Machiavellian aim would be obvious – micro-brews). Focus will shift from providing a better product for customers, and to pleasing politicians and bureaucrats who can protect market share. Will the “procedure” rooms that are limited include market innovations such as the Walgreen’s health clinics? Why else would Hospitals get on board with this monstrosity if there wasn’t something in it for them?

A former State Rep. who is a friend of explained why States do something similar. To prevent some hospitals from focusing on the profitable people and procedures and to share the burden with hospital that would have excess amount of indigents. I’m not quite sure I follow the cause and effect, but I’ll take his word for it. If he is right, then this is the blueprint for preventing a two tier health care system of public and private health care like there is in some Latin American Counties.