[TheFederalist] There’s a reason Planned Parenthood isn’t very good at women’s health care, as these reviews attest: Planned Parenthood’s bad business model. Because Planned Parenthood is a rational economic actor, its clinics will push abortion over other women’s health care--explicitly in the event of a pregnancy, and implicitly by not providing adequate contraceptive care and instruction.Why? First, Planned Parenthood is a business franchise, just like McDonalds, and its franchisees--local clinics, usually referred to as "affiliates"--are cost-sensitive. Affiliates get the highest profits from abortion, so they have an incentive to oversell this service.
Second, because many Planned Parenthood customers have nowhere else to turn, Planned Parenthood can get away with providing shoddy contraceptive care. Here, there are two incentives at play: Planned Parenthood faces a low profit margin when selling contraceptives; and providing subpar contraceptive care and instruction indirectly pushes abortion on some customers.
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If revenue per abortion is estimated to be around $500 (a conservative estimate), then $164 million, or 15 percent of clinic-level revenue, comes from abortion. This not only factors in "Non-Government Health Services Revenue," but also includes "Government Reimbursements" that go toward abortion (more than half of the states cover abortion through their Medicaid programs). Pro-choice advocates love to point out that abortion is only 15 percent of Planned Parenthood affiliate revenues.
From 2015, but I got a little curious and was astounded to find the Planned Parenthood model resembles that of ReMax, etc. but subsidized by $Taxpayer.
| The ReMax business model works very well for driven, entrepreneurial real estate agents who don't want to be held back by less able colleagues, nor to give up a large portion of their earnings to a broker who does not do much for them because they do so much for themselves. But there are still plenty of able, driven real estate agents in traditional brokerages to provide competition, keeping the ReMax folks honest. |