Banishing Profit Is Bad for Your Health

by Bill Hammond |  | Wall Street Journal

House Democrats’ new Medicare for All bill asserts “a moral imperative . . . to eliminate profit from the provision of health care.” The legislation specifies that federal health funding—virtually all health funding if the bill were to become law—may not be used for “the profit or net revenue of the provider.” That makes it more radical and less realistic than even Bernie Sanders’ plan.

In one stroke, the House bill would sweep away the business model used by the vast majority of doctors in private practice, 28% of hospitals, 70% of nursing homes, and countless clinics, outpatient surgery facilities, dialysis centers, home-care agencies and more. The bill doesn’t detail an enforcement mechanism, but it seems to mean that thousands of providers would either have to reorganize as nonprofits or shut down.

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