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A heightened express off private payments dilutes any effect on top quality the insurance policy shift in public money have

A heightened express off private payments dilutes any effect on top quality the insurance policy shift in public money have

Other consequence of Glazer and you will McGuire’s (2002) model is the fact that training that a profit-maximizing supplier responds in order to changes in Medicare payments is actually a purpose of the personal/private payer combine. The greater number of a good hospital’s express out-of personal people, the greater power your alterations in social fee coverage have a tendency to possess.

Wu (2009) terminology Glazer and you may McGuire’s “contrary causality” story (you to definitely societal cost respond to personal prices) a great “strategy” theory in the sense that public payers act strategically during the form pricing.