There’s no shortage of politicians in Washington ready to blame insurance companies and drug manufacturers for the crushing cost of health care. Yet the single largest driver of health care costs in recent years isn’t pharmaceutical stock-buy backs or opaque insurance practices–it’s hospital systems.
What makes this so frustrating is that rising prices for hospital services aren’t the result of a functioning free market, but rather of perverse incentives created by the government that reward hospitals for their size instead of the value they provide patients.
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