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1st:the local "medical arms race" leads to attention and relevant hypothesis. It contrasts with another hypothesis that the supply determined solely by " the extent of market" . Authoer develops a model to do forcasting. The result shows that proper understanding of market extent is vital, otherwise will lead to overestimate competition.
2nd: as mostly asserted, consumers do not benefit from hospital competition, which is allegedly wasteful, leading to high cost without commensurate benefits. As result, it may cause lower quality of care and higher cost of care.
3rd: the implication of MAR hypothesis not only among hospitals, but also on media and hospital antitrust merging decision. |
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