You are the CFO (business office manager) of a 26-bed rural hospital. The chairman of your governing body, who has been the chairman for over 30 years, is discussing with you the possible ways to improve the hospitals financial position. During the discussion, he asks you why you cannot increase the charges to Blue Cross to cover the losses to Medicare, Medicaid, and charity. He goes on to say that this strategy was used in the 1970s and 1980s and he does not understand why it will not work in 2010.

What do you tell him?