Other outcome of Glazer and you may McGuire’s (2002) model is the fact that the knowledge to which a return-improving seller responds so you’re able to alterations in Medicare costs is actually a work of the public/private payer mix. The more a beneficial hospital’s express regarding societal patients, more control the changes in societal payment policy commonly has actually.
Wu (2009) words Glazer and McGuire’s “reverse causality” tale (one personal rates address personal prices) a beneficial “strategy” theory in the same manner that public payers behave smartly when you look at the function costs. In contrast, she names the greater number of standard tale-one medical facilities that have untapped ;once the “markets fuel” hypothesis. These hypotheses highly recommend a unique results of payer mix. Depending on the markets power hypothesis, healthcare facilities with a much bigger share out of individual customers would pricing shift alot more for their higher bargaining energy. Having said that, the methods theory indicates one to hospitals that have a bigger share out-of private clients would cost move faster since they’re shorter delicate to (smaller dependent towards) personal costs.
Clement (), citing earlier work on agencies theory, contended one to each other nonprofit and-finances medical facilities maximize energy attributes having both profit and you may quantity portion
Stensland, Gaumer, and Miller (2010) considering another mechanism where societal payer–established medical ;oriented revenue. Continue reading “A heightened show out of private costs dilutes almost any effect on quality the policy shift in public areas payments might have”