Another Free Market “miracle”
Wednesday, July 2nd, 2008 By James Nesbitt
The Enquirer reported on Drake Hospital’s recent turnaround over two weeks ago, but it is a story worth revisiting for further thought:
Three years ago, the long-term rehabilitation hospital was losing more than $10 million a year, slightly less than Hamilton County taxpayers were pumping into it annually to keep the facility afloat. Its costs were 70 percent higher than those of other hospitals. Its chief executive officer was making more than $400,000. Meanwhile, the center was operating at 45 percent of capacity and its supporters lived in fear it would close.
Drake’s only hope was to take a dose of strong medicine. In 2005, Hamilton County commissioners ceded control of the center to the Health Alliance. The old board was dismantled, the administrative team fired, employee benefits slimmed down, and its budget and admissions policies overhauled.
The privatization not only stabilized the care center, it saved it. Now center administrator Karen Bankston, senior vice president at Drake for the Health Alliance, predicts a $9 million surplus by the end of the fiscal year. Equally important, the center has bumped up admissions and is hoping to open its doors to hundreds of Iraq war veterans with brain injuries and land a highly coveted Department of Defense contract for their care.
Alliance officials say the turnaround has been so successful that they’ll no longer need public funds after a Hamilton County operating levy expires next year.
The Drake story offers yet more evidence that private health care is superior to the public health care systems endorsed by certain major presidential candidates. May it serve as a candle, however dim, for an American public currently stumbling around in the dark when it comes to effective health care solutions.
Tags: Health care, privatization
July 2nd, 2008 at 1:10 pm
nice!