Schneider Institutes for Health Policy
Research Publication Summary
| Citation: | Altman SH, Shactman D, Eilat E (2006). Could U.S. Hospitals Go the Way of U.S. Airlines? Health Affairs 25 (1): 11-21. |
| Abstract The market for hospital services, like global markets in general, is becoming more competitive. Increased price transparency and focused competition can squeeze out inefficiencies, restraining prices and making some consumers better off. But competition can have a dark side. U.S. hospitals can treat Medicare and Medicaid patients at less than cost, care for the uninsured, and provide other money-losing services because they can cross-subsidize. By 2025 the need for general hospitals to cross-subsidize will greatly increase, but their ability to do so will be diminished. U.S. hospitals could begin to resemble U.S. airlines: severely cutting costs, eliminating services, and suffering financial instability. | |
| More Information: | http:/ |
| Research Area: | Acute and Chronic Health Care |
| Core Competencies: | Financing, Organizations, Costs & Value |
