Competition and Charity Care
November 19, 2009 Competition

Some in the current health insurance debate argue that you simply cannot introduce market forces into the health system and still hope the needy are served. Here is a little bit of evidence, so does increased competition across hospitals reduce charity care?

Despite the pervasive belief that competition impedes a hospital’s ability to offer services to the uninsured and under-insured, I find no statistically significant evidence that increased competition leads to reductions in charity care. In fact, I find some evidence that reduced competition leads to higher prices for uninsured patients.

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