How Does The Villages Health System Work?
As a retired banker, I'm trying to figure out how the new Villages Health System works as a business entity.
Articles I've read say that a single doctor with a receptionist, nurse and modest office space must see 8 Medicare patients per hour in order to make a reasonable amount after paying all his expenses. (Assuming his patient roster is heavily Medicare-insured, as is the case in The Villages.)
The Villages Health System says that patients can enjoy extended visits with their primary care doctor. There has been a suggestion that doctors in the system will be paid a salary and that VHS will not be a fee-for-service model. And we can clearly see that the staffing and luxury of the offices are well above the norm, resulting in an above average cost structure.
So as a business, how does The Villages Health System make a profit? Sooner or later that has to happen. Medicine is a business. I just can't figure out how it will work. Does anyone have an explanation?
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