Saturday, April 12, 2014

Hospitals up fees: Cutting costs is terribly hard

Should we expect otherwise? Of course they regularly up their charges. Like public transport, telcos etc., these monopolistic providers have pricing power. It is very painful to control costs and often businesses do not make much progress on costs unless they have no choice. If you stick around in hospitals long enough you will see how wasteful they can be sometimes. Some staff have wasteful habits and as you know it is hard to change people's habits. Cutting cost is truly painful business and it is incredibly easier to just pass on the costs to others. Busy senior executives have more interesting and sexier projects to get to than watch costs. Besides a reputation for cost cutting rarely help to further your career. Subordinates and colleagues are also unhappy with you.

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