Will Privatization Reduce Costs?

Medical Savings Accounts: will they reduce costs?

BACKGROUND Medical Savings Accounts are an attempt to reduce health care costs by transferring responsibility for expenditures to patients, while providing them with state-supported base amounts to cover some of the costs. We wondered whether such a system would actually be effective, given the fact that medical care expenditures (and illness) are unequally distributed across the population. ...

Generic drugs in cardiology: will they reduce health care costs?

The introduction of generic drugs should lower health care costs by reducing the price of drugs. The realization of this goal may, however, not be fully achieved: generic drugs may be underused or misused in comparison to prescription drugs because of a lack of ongoing postgraduate physician education. More importantly, there is little incentive to explore new indications for soon-to-be generic...

Will volume-based referral strategies reduce costs or just save lives?

Although recent policy initiatives aimed at concentrating selected surgical procedures in high-volume hospitals may reduce mortality, their economic implications have not been considered fully. From the hospital perspective, the primary effect of these policies will be to redistribute surgical profits to bigger centers. From the payer perspective, prices paid for procedures will likely increase...

Increase Safety, Reduce Costs

Do hospital mergers reduce costs?

Proponents of hospital consolidation claim that mergers lead to significant cost savings, but there is little systematic evidence backing these claims. For a large sample of hospital mergers between 2000 and 2010, I estimate difference-in-differences models that compare cost trends at acquired hospitals to cost trends at hospitals whose ownership did not change. I find evidence of economically ...