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a. to decrease health care costs by increasing competition b. to discourage physician-patient relationships c. to decrease health care costs by decreasing competition d.

          a. to decrease health care costs by increasing competition
b. to discourage physician-patient relationships
c. to decrease health care costs by decreasing competition
d.
        

Added by Gloria S.

Principles of Economics
Principles of Economics
Gregory Mankiw 8th Edition
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a. to decrease health care costs by increasing competition b. to discourage physician-patient relationships c. to decrease health care costs by decreasing competition d.
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Transcript

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00:01 To the first that is effective treatment so this option suggests that the escalation in cost has led to more effective treatment however, this seems unlikely as increased cost does not necessarily equate to better outcomes if we go for the b that is pre admission testing then this option suggests that the escalation in cost has led to more pre admission testing while this may be true it does not address the overall impact of cost escalation on healthcare delivery if you go for the c part that is the medical necessity requirements for this this option suggests that the escalation is cost has led to more strengthened requirements for medical necessity this may be true and insurance companies and other players right, so if you go for option number d which is decreased consumer interest for which the option suggests that consumers are less interested in health care due to escalation cost while this may also be true so based on this analysis the best answer for the same would be option number eight...
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