“At one time a hospital I worked at was losing money on every maternity case. They kept doing them to remain viable for other cases where they could make money.”
That’s called a “lost leader”.
Yes. I think it only took place for a year, but it was hell when it was happening.
Our hospital went eight years without giving raises, and then implementing floating days off which hurt even more.
When DRGs came in, it was brutal.
Many hospitals lose money on OB cases.
Our hospital certainly does.
We do them because we have a responsibility as a community hospital to deliver babies, and because we don’t want to deliver babies in the ER.
OB losses are driven in large part by the very high cost of malpractice insurance.
That’s called a “lost leader”.
"Loss-leader"?