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> Hospitals have an operating margin of 2-5%

There's no way a Chairman/CEO would ever reduce the operating margin by just giving themselves and their buddies a raise is there?

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Are you saying that most hospitals have 50% profit margins, of which 90% are paid to the chairman leaving only a thin margin? That seems difficult to believe.

They may have 4.2% margins knocked down to 4% by exec comp but I don't see that how that fact would change OPs point.

I'm saying if you think that administrative expenses (among others) can't be inflated for a profitable company, I would like to run your company and demonstrate what executive compensation can include:

- Base salary

- Bonuses

- Stock options

- Perquisites (perks) like company cars or private jet usage

Just to be clear - I like my private jet(s) on call in case I want to get away for the weekend. TYSM

Yeah, if the hospital is part of an HMO, it wouldn't even be legal. The ACA sets a floor on medical loss ratio.

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