Investing in Hospital Stocks

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We are always plagued by the thought that you will never know what would happen in the future. Nothing is certain. One day you’re planning your whole life out, making sure that things would turn out just right and then, boom, something comes and your plans are ruined. There will always be an incident that comes unexpectedly. If that time comes, it is best that we face it prepared.

When we say nurses, we always envision people who are either dressed in white uniform or the colorful scrubs caring for the sick. As nurses, we are trained to administer ordered medications, respond to emergencies and address patient’s needs. We have studied all about nursing care and how to perform our duties well. Our focus are always on the patient and nursing tasks, that we don’t even spare a single thought on the business part of hospitals. Nurses are care providers, yes we were made to be one, but how would nurses feel if they were to expand their horizons and become a stakeholder rather than just an employee of the institution?

The growth of hospitals

Through the years, the healthcare profession has witnessed the growth of hospitals, despite high fixed costs and increasing competition, partly because of government assistance through legislation. Take the case of US hospitals for example, which are mostly not-for-profit. In rural settings where the hospital may be the only source of medical care for many miles around, the government has an unwritten obligation to make sure that they are financially able to operate.

Medicare compensation rates tend to be high enough to guarantee most hospitals stay afloat, creating a downside barrier for publicly traded hospitals. Therefore, any hospital that can exploit its profits by running proficiently through cost controls and harvest market share by offering a better service and product (such as offering orthopedics, cardiac services and taking in more renowned doctors) can grow faster than its competition.

Expanding benefits

In the present day reality where almost everything has a price and even increasing over time, it is important for people to know where to put their finances. It is imperative that people know where they can make the most of their benefits. Take for example, health insurance, which is of great help in protecting citizens from high medical care costs. Some employers may even offer to help pay for the employee’s insurance.

While it is wise for people to invest in health insurances, not everybody is employed in an organization that offers assistance in paying for such. Individuals who do not receive private insurance through their employer will spend significantly more money than those who must purchase individually.Furthermore, some private insurance only pay up to 80% of the costs of care. Therefore, there are still several out-of-pocket expenses that patients must budget. Also, patients must pay the monthly costs of private insurance whether they need the services or not.

As the years pass by, expenses become higher, facilities become more expensive and not even the healthcare sector is immune to this. Hospital fees may increase as well as hospital room rates, professional fees of doctors, medicines and many more. By being a shareholder in the hospital, expenses will be cut short, and a whole lot of your money will be saved.

Some examples of the advantages of being a hospital shareholder are:

  • Free room rates
  • 50% discount on professional fees
  • 50% discount on laboratory and diagnostic procedures
  • 25% discount on cardio-pulmonary services and electrocardiography (ECG)
  • 10% discount on pharmacy and room items
  • Free operating and delivery room fees
  • Free consultation on dental services
  • 30% discount on dental procedures

Better yet, these benefits are not only limited to you as the shareholder, but are also expanded to your dependents as well including your spouse, parents and children.

Expensive but worth it

Investing in a hospital is quite expensive, but if you envision the future where you or your dependent might need to avail hospital services, which by then would cost about triple of even more, then multiply it to the number of times you might need to avail such, then it is most probably worth it since expenses would mostly be cut in half if you are a shareholder.

From the discounts you avail from doctors’ fees alone, you would save quite a fortune. Add to it the expensive room fee (which you can avail for free) and a fixed discount at whatever the usual price is. Thus, even with the rise of medical bills, you still get the discount rate.

If you are a stakeholder, then the benefits, stay the same, no matter what the cost.

Sources:

Liane Clores, RN MAN

Currently an Intensive Care Unit nurse, pursuing a degree in Master of Arts in Nursing Major in Nursing Service Administration. Has been a contributor of Student Nurses Quarterly, Vox Populi, The Hillside Echo and the Voice of Nightingale publications. Other experience include: Medical-Surgical, Pediatric, Obstetric, Emergency and Recovery Room Nursing.

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