Why Health Costs Spiral: The Case of Emergency Department Regulation
Journal of Business and Economic Perspectives, Vol. 23, No. 1, pp. 6-15, Summer 2006
Posted: 2 Jan 2008
In this paper, we analyze the effect of hospital emergency department regulations on overall health costs using microeconomic tools of analysis. We find that regulations that have price ceiling effects create an upward pressure on prices in other areas of the health care market as hospitals and health care providers seek to compensate for their losses in emergency department operation.
Keywords: health care, health economics
JEL Classification: I10, I11, I18
Suggested Citation: Suggested Citation