Health costs are hence place as a result of a negotiating techniques ranging from medical facilities and you may agreements (Ho 2009; Moriya, Vogt, and you will Gaynor 2010)
That it distinction shows the newest character out of “excludability” into the healthcare rate form. That is, hospitals in the elizabeth attributes are susceptible to exception to this rule regarding individual payers’ hiring companies. It is one to source of control for health arrangements and you will drives individual prices downward. Alternatively, those medical facilities you to arrangements hesitate to prohibit from their channels as regarding status or other special attribute may be able to extract highest pricing of arrangements. Also, a medical facility having a region dominance (perhaps due to a range into the closest competitor) cannot be excluded of plans’ systems, therefore driving one to hospital’s pricing upward. Healthcare facilities performing near full ability may also consult high rates (Ho 2009).
The marketplace stamina off companies that promote insurance and you will/otherwise administer self-covered company agreements along with influences private rates. Such as for instance, a strong having a large share of the market has considerable fuel into the negotiating the cost of health care qualities. Read more →
