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Babhadfad12 t1_j1uwp9c wrote

Reply to comment by JRZane in Why are NJ doctors, especially those in family medicine all joining for-profit, multi-specialty medical groups? Those groups do are deteriorating the good doctor and patient communication/relationship that use to exist. by Eastcoastpal

> as a business owner, I understand the importance of margins, but that marginal increase translates to them profiting 2.6BILLION dollars more than the previous year.

Nominal profits are not comparable year to year, especially due to the decreasing purchasing power of the currency, aka inflation. Hence, it is most appropriate to use profit margins when comparing a business’s performance over time.

> Sure, during typical years a 2-4% increase is a sign of good, lean management. but it's the same way flood insurance companies make more money during floods....it sure seems counter intuitive, no?

Health insurance companies are kind of / not really insurance companies, which is why I think managed care organizations is a better term for them.

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JRZane t1_j1uxc97 wrote

Just reading the report I linked.

"Independence Health Group, Inc., (Independence) the parent company of Independence Blue Cross, LLC, reported solid financial results for 2020 with total revenue of $21.8 billion, up $2.6 billion or 13.5 percent over 2019"

you could argue the same for profit margins too. If you want to get into depreciation, cash on hand, deferred losses, bad debt, real estate depreciation/appreciaiton. then those numbers Never mean anything at all. you're still getting lost in the numbers and missing my ACTUAL initial point. what you're saying is valid, but I believe your missing the forest for the trees here. good day, good luck. im out.

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