The increases are seen in conditions or outcomes deemed preventable and are key measures of hospital safety and quality.
But not profit. If these hospitals were paid based on decreasing preventable conditions we’d all be much better off.
Right now coming into a hospital twice is more profitable than coming into a hospital once. If we (insurance) paid based on minimizing visits then both hospital safety and quality would increase.
That isn’t to say it’s perfect. Corporations will always find loop-holes in the name of profit, but it would be a good first step. (Assuming we’re going to have for-profit hospitals at all, which is the real mistake.)