We discuss how the Soviet nail factory parable perfectly illustrates the dangers of misaligned incentives in healthcare.
We explain how setting the wrong metrics—like EBITDA instead of free cash flow—leads to perverse outcomes: just as Soviet factories produced useless nails to meet quotas, physical therapy platforms prioritize patient turnover over quality care, resulting in patients who don't return.
We highlight how many larger PT platforms are actually insolvent, unable to cover their debt interest, and argue that healthcare organizations must recognize these flawed metrics are ruining their operations.
