The effects of hospital competition and the Medicare PPS program on hospital cost behavior in California.

@article{Zwanziger1988TheEO,
  title={The effects of hospital competition and the Medicare PPS program on hospital cost behavior in California.},
  author={Jack Zwanziger and Glenn A. Melnick},
  journal={Journal of health economics},
  year={1988},
  volume={7 4},
  pages={
          301-20
        }
}
Previous studies of hospital competition have found that greater competition leads to higher hospital costs. In this paper we report how the behavior of California's hospitals has changed since the introduction of programs intended to contain the rate of increase of hospital costs. Using data that cover the period preceding and following the introduction of these programs, we found that hospitals in more competitive markets have lowered their costs significantly. 
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