Public vs Private

Co-investment and dual employment are among the issues which cloud ownership. The best rule I’ve heard is that ownership is linked to residuals. This is an economic term, and it means the money (or debt) left over after operation costs. If a hospital is private, the residual is profit for the owner or owners. If a hospital is public, regardless of how much income any doctor or manager in the facility makes, residual must be passed on to the government owner or eliminated through reinvestment in the facility.

Doctors and managers in public or private hospitals may be contractors, employees, earn volume-linked bonuses, and make huge or humble amounts of money. This is unrelated to the Public or Private status of the facility except for the case where the doctor in question owns the facility in which case her earnings are the same as facility residuals.