A greater express out-of individual costs dilutes any type of impact on high quality the policy shift in public places costs may have

A greater express out-of individual costs dilutes any type of impact on high quality the policy shift in public places costs may have

Several other consequence of Glazer and you may McGuire’s (2002) model is that the education that income-boosting seller responds to changes in Medicare payments is actually a work of the societal/personal payer combine. The greater good hospital’s share regarding personal clients, the greater number of control the changes in social percentage coverage often has actually.

Wu (2009) terms and conditions Glazer and McGuire’s “reverse causality” story (you to definitely social prices address private prices) a great “strategy” hypothesis in the sense that personal payers function smartly inside the mode rates. However, she names the greater number of simple facts-you to healthcare facilities which have unexploited ;as the “markets stamina” hypothesis. Both of these hypotheses recommend a separate results of payer mix. Depending on the sector power theory, medical facilities with a more impressive show out-of private people do costs change way more for their better negotiating energy. On the other hand, the strategy hypothesis suggests one hospitals with a larger display out of private people do pricing move smaller since they’re reduced sensitive and painful in order to (smaller established on the) social payments.

Clement (), pointing out earlier run department theory, debated one one another nonprofit and-funds hospitals optimize electricity attributes with both funds and quantity parts

Stensland, Gaumer, and you will Miller (2010) provided another system where social payer–based medical ;based revenue.Okumaya devam et