Modern Healthcare has published it's annual survey of compensation for the health care CEOs of the 10 largest companies.....and for the first time in seven years, Modern Healthcare reports, the survey "failed to turn up a healthcare CEOs who made more than $15 million in compensation last year." Excuse me if I don't drown myself in tears given that the median compensation for a CEO was still more than $4 million.
In another story reported by Kaiser Family Foundation, AHIP (America's Health Insurance Plans) has a new feature up on its website, where they make the claim that their profits are only 1%. However, this statistic is completely misleading. Insurers are measuring their profits against total national health care spending....instead of measuring their profits the traditional way -- the difference between revenues taken in and expenses out. If you just look at revenue minus expenses, insurance company profits are in the range of 2-10%. (see Fortunes listing of insurance industry profits: http://money.cnn.com/magazines/fortune/fortune500/2006/industries/Health_Care_Insurance_Managed_Care/2.html)
But lets not leave out the most profitable industry of them all, the pharmaceutical industry....who in 2008 report 19.3% profit. WHAT! They only slightly edged out the Medical Products and Equipment Industry with 16.3% profit. Really?!?!?!