This so-called countervailing power, which is particularly noticeable in the hospital industry, has come about as the government has sought to impose price guidelines, administrative regulations and other parameters on the medical industry. Faced with these obstacles, and with a possible decline in revenues, the industry has placed greater emphasis on resisting additional intervention, and has found creative ways to either work around regulation, or to combat it directly (Hackey, 1999, p. 625).
Government intervention in the health care industry increased significantly during the second half of the twentieth century, and the cost to consumers has also increased. Additional intervention in the industry is likely to result in additional costs, some of which will be monetary and some of which will be related to competition.
Direct costs are likely to increase as the amount of regulation and reporting requirements increase. Competition may decrease as providers move out of the market as their profit margins are eroded by the increased costs associated with supporting government regulation.
Hackey, R. B. (1999, September). Groping for autonomy. Journal of Economic Issues, pp. 625-641.
Hallam, K. (1999, September 20). Docs want government billing guidelines. Modern Healthcare, p. 24.
Pretzer, M. (1999, September 20). Medicare's finest? Medical Economics, pp. 39-40.
Stone, P. H. (1999, July 17). Kinder, gentler arm-twisting. National Journal, pp. 2080-2085.
Source: Medical Economics, Sept 20, 1999 v76 i18 p39(2).
Title: Medicare's finest? Well, not really.(Washington Beat)(claims
Full Text COPYRIGHT 1999 Medical Economics Company, Inc.
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