Medical prices are hence place through a negotiating processes anywhere between healthcare facilities and you may plans (Ho 2009; Moriya, Vogt, and you can Gaynor 2010)

Medical prices are hence place through a negotiating processes anywhere between healthcare facilities and you may plans (Ho 2009; Moriya, Vogt, and you can Gaynor 2010)

That it variation highlights the latest part of “excludability” when you look at the medical rates setting. That’s, hospitals for the age features are susceptible to exemption away from individual payers’ hiring companies. That is one way to obtain power to own health agreements and you can pushes personal costs downwards. Conversely, those medical facilities one plans think twice to exclude off their communities due to the fact away from status or some other special characteristic may be able to extract high prices regarding arrangements. Similarly, a hospital which have a city dominance (perhaps because of an excellent distance on nearest opponent) cannot be omitted out-of plans’ networks, for this reason driving one hospital’s rates upward. Hospitals operating close full capabilities also can request highest cost (Ho 2009).

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