California Hospitals Compete By Lowering Costs
Published in: California Hospitals, 1992, p. 18-19
Posted on RAND.org on January 01, 1992
Concerns The California Experiment, in which, because of the emergence of managed care organizations, hospitals have been experiencing a great deal of competition. This article suggests that in a market such as California, where HMOs and PPOs have gained widespread acceptance and excess hospital capacity exists, competitive market conditions can be leveraged to negotiate lower prices with health care providers. This finding was confirmed in California. Data comparing California to the nation as a whole suggest that this finding is generalizable.
This report is part of the RAND Corporation External publication series. Many RAND studies are published in peer-reviewed scholarly journals, as chapters in commercial books, or as documents published by other organizations.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.