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Competition and prospective payment have been widely used to control health care costs but may together provide incentives to selectively reduce expenditures on high-cost relative to low-cost users. We use patient discharge and hospital financial data from California to examine the effects of...
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Background: Medical cost-effectiveness analyses (CEA) traditionally treat patients as isolated individuals and neglect the effects of improvement in patients' health on the welfare of their family members. Recent analyses of the theoretical foundations of CEA suggest that cost-effectiveness...
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