Thinking About Cost Escalation

The main question to answer in health care policy is what, if anything, should be done to slow cost escalation. Of course, rising costs are not a problem per se. It should not be surprising that a wealthy country would want to devote an ever larger share of its resources to improved health. But it is widely recognized that much spending...

Financial Incentives and Health Care

Health care policy debates can be frustrating because they seem at times to assume the health sector operates without regard to financial incentives. For instance, proponents of an expanded governmental role in cost control seldom acknowledge the obvious: economic theory, with abundant empirical evidence from around the world backing it...

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