A study by the Center for studying health system change, which frees Tolday shows that hospitals different prices for the treatment of the same diseases erhalten.Center President Paul Ginsburg says that the disclosure:
"Variation in hospital pricing found (sic) are incompatible in this study with competitive markets - at least for markets outside health care," said HSC President Paul B. Ginsburg, Ph.d.;
Hospital markets may not hard-fought, but this argument is silly. "("One could also say "Is (not) the variation in automobile prices" are") with highly competitive markets incompatible." But it would be wrong in both cases.
Vertical quality differentiation (i.e., some vendors are better than others) generated in competitive price dispersion. It is only in the most basic treatment of competition - in the first week of the intro economics course, vertical differentiation is ignored. Observed price dispersion is not incompatible with competition.
In addition it is severity dispersion within Diagnostics (such as some hospitals get the sickest patients within DRGs). Medicare ignored this when the prices set. But private insurers need not ignore this and can calibrate prices accordingly.Hospitals can get higher prices getting sicker patients.Also, this is not incompatible with competition.
So, what have we learned from this study? the different hospitals have different prices?We see price dispersion for authors and for dry cleaning and electric pencil sharpeners, for crying out loud.This is not news, and there are no political implications that that drawn from the study werden.Aber is health care, so I cover in the New York will this trial times, predict even if it fails, say anything we don't already know.
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