Thursday, August 7, 2014

Is Consumer-Driven Health Care Hurting Hospitals? And Should We Care?

Dobson DaVanzo, a leading consulting firm, has produced a report for the Federation of American Hospitals, the trade association for for-profit hospitals. The report notes that the rate of change of health spending has slowed down. Indeed, the report concludes that spending is set to shrink this year by over one percent. This introduces a “paradox”.

We think this “paradox” is explained by consumers gradually becoming free of the money illusion that someone else (usually, the employer) is paying for their health care.

Read the entire column at the National Center for Policy Analysis Health Policy Blog.

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