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Understanding variations in hospital costs: An economics perspective

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Abstract

This article provides a review of factors that cause hospital costs to vary. Examples of public policy issues and strategic management issues related to hospital cost variations are presented. Two commonly used theoretical perspectives for studying costs, microeconomic theory and industrial organization theory, are briefly reviewed. The article concludes with suggestions for future research including the application of a different theoretical perspective, X-efficiency Theory.

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  1. Graduate Program in Health and Medical Services Administration, School of Management, Widener University, 19013, Chester, PA, USA

    Michael D. Rosko

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Rosko, M.D. Understanding variations in hospital costs: An economics perspective. Ann Oper Res 67, 1–21 (1996). https://doi.org/10.1007/BF02187021

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