When Hospitals Profit Heavily From Prescribing Medications, It Creates an Incentive to Write Unnecessary Prescriptions

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BY SRH

Over time, government has shifted from focused lawmaking in the 1800s to acting more like an ATM today. When assistance is given without careful consideration, those looking to take advantage quickly figure out how to benefit the most.

It appears that many government employees responsible for overseeing health care programs are failing to meet their oversight duties. This raises concerns about how they might handle a national health care system. Unfortunately, we don’t have to speculate, as current examples already show patterns of mismanagement, fraud, and poor oversight across hundreds of health care programs.

Take Minnesota’s Somali aid scandals, where billions were reportedly wasted. If more resources were dedicated to investigations, it’s likely we’d uncover similar corruption in other states as well. The culture of accepting fraud among some government administrators has persisted for too long, and leadership on these issues is seriously lacking.

Without significant reform, these programs may be too compromised to salvage. Those tasked with monitoring them often seem unable or unwilling to address the problems effectively. Ideally, individuals found responsible for fraud or negligence would be held accountable, but with so many involved, meaningful consequences seem unlikely.

My impression is that this government initiative offered financial incentives to hospitals that increased the number of linked sites they had in order to maximize their earnings. It would also encourage doctors to prescribe people covered medications.

Thus, we have these massive medical conglomerates whose revenue streams are unrelated to the quality of treatment they provide to their retail patients, all because of this scheme. Additionally, they are discouraged from looking into alternative treatments that could improve patient outcomes since doing so would lower their income from prescription drugs. How horrible and unholy, going against the Hippocratic oath.

These are some major underlying issues within the healthcare system that merit attention:

  1. When hospitals profit heavily from prescribing medications, it creates an incentive to write unnecessary prescriptions.
  2. This push for more prescriptions can lead to patients developing new health problems, such as liver or kidney issues, which, intentionally or not, brings in further business for hospitals and runs counter to the Hippocratic oath.
  3. A related concern is the ongoing problem of antibiotic over-prescription, which continues to worsen and has significant health risks.
  4. On the pharmaceutical side, any form of kickbacks should be strictly prohibited—such arrangements undermine trust and proper care.
  5. The structure of medication pricing can motivate hospitals to prefer more expensive drugs due to higher profits, while pharmaceutical companies benefit from grants that cover the cost difference. This sets up a system that rewards higher prices and over-prescribing costly medications.

Many now see that hospitals, insurers, and even some doctors are more focused on profits than patient welfare, raising questions about adherence to medical ethics. The system’s structure enables excessive charges and large profits, with some feeling that public resources are being misused at taxpayers’ expense.

Critics argue that increasing government involvement hasn’t fixed these problems; instead, it’s led to higher spending and more bureaucracy, while initiatives like “Medicare for All” spark debate about fairness and sustainability. They note that Medicare was originally designed only for those retired or unable to work, not as universal coverage.

Some advocate that healthcare—including providers, supplies, and medications—should operate on a not-for-profit basis, focusing on humanitarian care rather than profit.

America, giving free care to illegals while confiscating the property of good citizens who are made to pay.

For-profit hospitals are typically owned by investors or private corporations, operating much like any publicly traded business. These institutions are required to pay federal, state, and local taxes, and they aim to generate a financial return for their shareholders.

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