Question

How can a public hospital have a low or negative operating margin yet have enough funds to survive and prosper? 300 and less

Answer 1

Ans: Public hospitals are are those hospitals that are owned by the governmnet itself and this type of hospital provides medical care free of charge, the cost of which is covered by government reimbursement. Although there is no profit margin in this kind of hospitals and they have low or negative operating margin but still it runs smoothly. These hospitals are generally run by the government, so all the fundings and the expenses are held by the the government. These are non- profitable hospitals. The main purpose and aim is the welfare of the people and patient.

So, the funds given and managed by the government, then there is enough reasons to survive and prosper.