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Asked by stacyrenea77 - 4 years ago
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Richard Level 77 / Retired Dentist
Answered 4 years ago
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The occupancy rates vary considerably and when they are low the overhead remains constant. This results in an operating loss which must be made up from sources other that hospital operation.
Currently Medicare does not compensate the full cost of care. Therefore there must be enough private insurance or private patients who pay bills to cover the costs.
Some areas are short of doctors to admit patients to the hospital.
There are some other issues such as providing specialized care that can cause problems.



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