A press release hit the in box announcing that North Carolina hospitals are contracting with Presbyterian Health Plan of New Mexico, a subsidiary of Presbyterian Healthcare Services of New Mexico, to manage the provider led health plan they are establishing under the state’s Medicaid reform initiative.
So we googled Presbyterian Healthcare Services. They are a big healthcare conglomerate of hospitals, doctors and a managed care insurance company, Presbyterian Health Plan of New Mexico. And Presbyterian Healthcare Services is nonprofit. That means they are supposed to be pure, unconcerned with grubby things like profits and stockholders.
We dug deeper. Presbyterian Healthcare Services actually earns an 8.8% profit margin.
Only it’s not called a profit. It’s called a surplus since Presbyterian Healthcare Services is allegedly nonprofit.
According to Google finance, United Healthcare, the huge managed care for profit corporation, only earns a 3.7% profit margin which is less than half of Presbyterian’s take.
For months, hospitals and doctors said bringing in for profit managed care companies would ruin Medicaid. Now the hospitals are bringing in a New Mexico healthcare company that rakes in twice the profit margin of United Healthcare to run provider led Medicaid. And Alburquerque gets six hundred new jobs to manage it.