Hospitals respond to the health care challenges in their communities, whether the problem is SARS or syphilis, anthrax or chicken pox, obesity or influenza. Hospitals are there when Americans give birth or die, are injured, or live with a chronic illness. In cities and towns throughout the United States, hospitals are a key part of the health care delivery system. 1 Many industry representatives and experts also testified at the Commission's 2002 Health Care Workshop. Hospital topic panels included Perspectives on Competition Policy and the Health Care Marketplace (February 27) A Tale of Two Cities (February 28, April 11) Hospital Round Table (March 26) Defining Product Markets for Hospitals (March 26) Defining Geographic Markets for Hospitals (March 26) Single Specialty Hospitals (March 27) Contracting Practices (March 27) Issues in Litigating Hospital Mergers (March 28) Hospitals - Horizontal Networks and Vertical Arrangements (April 9, 2003) Hospitals - Non-profit Status (April 10) Hospital Joint Ventures and Joint Operating Agreements (April 10) Hospitals - Post-Merger Conduct (April 11) Physician Hospital Organizations (May 8, 2003) Quality and Consumer Information: Hospitals (May 29) and Group Purchasing Organizations (September 26). Representatives from hospitals and hospital organizations, as well as legal, economic, and academic experts, and government officials spoke at the Hearings. Chapter 4 also describes group purchasing organizations, their potential efficiencies, structure and incentives, contracting practices, and Health Care Statement 7. Chapter 4 describes and evaluates geographic and product market definitions, entry and efficiency issues, and the significance of a hospital's non-profit status. The next chapter considers hospital competition law issues, beginning with mergers. Chapter 3 also examines how government purchasing of hospital services affects the health care marketplace. Chapter 3 considers a number of current controversies, including payor complaints that hospitals are exercising market power and hospital complaints about single- specialty hospitals. This chapter describes how hospitals are paid, trends in hospital pricing, the pressures hospitals face, and delivery innovations, including hospital networks. HOSPITAL PRICING: DISTINGUISHING AMONG BULK PURCHASING, PRICE DISCRIMINATION, COST SHIFTING, AND CROSS SUBSIDIES.CONSUMER PRICE SENSITIVITY AND INFORMATION.HOSPITAL/PAYOR CONTRACTING IN THE PRIVATE MARKET.ENTRY OF SPECIALTY HOSPITALS AND AMBULATORY SURGERY CENTERS.HOW ARE HOSPITALS PAID: A HISTORICAL PERSPECTIVE.

Medicare manual chapter 3