I'm not sure the for-profit approach is exactly what's to blame. HMOs like Kaiser are legally forced to spend a certain fraction (80% percent for the worst case, more for large group plans) of their premium revenue on medical services. They can't save and pocket the money like a traditional for-profit enterprise.

This doesn't seem like a money-saving measure exactly. The main AIs the article talks about is making sure nurses on their nurses' lines aren't being assholes. I guess this used to be spot checked before so you save on that? Maybe? It seems like they are trying to solve the problem of some of their nurses staffing their nurses' line not treating their patients the way they're supposed to.

Well, I suppose you can rest easy on that count. Kaiser is principally a non-profit.

Every healthcare system optimize costs and rations care based on the price. It has nothing to do with profit or non-profit status.

agree 100%; but kaiser is already a non-profit organization, that's not the main issue in this case

But what about competition!?!?

There's no law saying you can't start a non-profit healthcare provider or insurance company. Why not do it?