22 Sep Healthcare costs are therefore set as a result of a bargaining process between hospitals and you may arrangements (Ho 2009; Moriya, Vogt, and you can Gaynor 2010)
It differences features the latest character regarding “excludability” in healthcare rates function. Which is, healthcare facilities from inside the e services is subject to exclusion away from individual payers' employing sites. This will be one source of power getting wellness plans and pushes private cost down. Alternatively, the individuals healthcare facilities one plans hesitate to prohibit from their companies because of reputation or another unique attribute is able to pull highest costs of preparations. Furthermore, a hospital that have a community dominance (perhaps on account of a great point toward closest rival) can't be omitted regarding plans' sites, thus operating you to hospital's prices upward.