Various other outcome of Glazer and you may McGuire’s (2002) design is the fact that degree to which a return-improving seller responds to alterations in Medicare payments is a purpose of the personal/personal payer blend. The more a great hospital’s express out of social clients, the more influence your alterations in public fee coverage often has actually.
Wu (2009) conditions Glazer and you can McGuire’s “reverse causality” tale (one social costs respond to personal pricing) a beneficial “strategy” hypothesis in the sense one to personal payers perform smartly when you look at the function cost. Alternatively, she labels more standard tale-one medical facilities with unexploited ;as “field strength” theory. These two hypotheses suggest another result of payer merge. According to the business stamina theory, healthcare facilities that have a bigger display out of personal customers carry out pricing change a lot more due to their better negotiating strength. Having said that, the methods hypothesis implies one to healthcare facilities with a larger show of personal customers carry out rates change reduced because they are faster painful and sensitive to (reduced centered for the) public repayments.
Clement (), pointing out before manage agency concept, debated one to both nonprofit as well as-funds hospitals optimize electricity functions having each other finances and wide variety areas
Stensland, Gaumer, and you can Miller (2010) given some other device in which societal payer–based hospital ;established money. It envisioned a hospital having highest sector stamina you to definitely orders large markups more than marginal will cost you. This allows a relaxed attitude to your cost, allowing them to go up. (Rather, the cost structure alone is a factor in high field energy, perhaps because of top quality.) Large costs result in Medicare margins as bad.