Health prices are thus place using a negotiating process ranging from medical facilities and you will plans (Ho 2009; Moriya, Vogt, and you will Gaynor 2010)

This huge difference shows the fresh new role out-of “excludability” into the medical speed form. That’s, medical facilities during the e features is at the mercy of exemption out-of private payers’ hiring networks. This might be you to definitely way to obtain influence to possess fitness agreements and you can pushes individual prices downward. In contrast, people healthcare facilities that preparations hesitate to exclude using their companies given that of status or another distinctive trait is able to extract high cost regarding arrangements. Furthermore, a hospital that have a location dominance (possibly because of a great range to the closest rival) can not be excluded away from plans’ communities, ergo operating one to hospital’s prices up. Medical facilities working near complete capability may request highest prices (Ho 2009). Continue Reading