June 07, 2004

TIRED OF THE INEFFICIENT, BUREAUCRATIC PRIVATE SECTOR

Non-profit hospitals are considerably more economically efficient. A couple of points - private non-profits are also efficient and effective at delivering financial services (credit unions), growing and marketing farm products (large farmers coops), education (universities), software (certain forms of open source), energy (not entirely fair but say The Seattle City Electric Utility as opposed to Enron). Is there strong evidence that for-profit enterprises, particularly in large publicly-held enterprises, are ever more efficient over the long term? They have huge additional costs with administration, stock dividends, fantastically bloated executive compensation. When the institution doesn't really offer or benefit from aggressive entrepenurial energy, and stable expansion is preferrable, one might well ask why the hell anything is for-profit?

Also, non-profit hospitals kill you less.

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