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PROLOGUE
U.S. Hospitals: Mission Versus Market
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In the 1990s managed care went to war against unsustainable hospital spending with selective contracting, utilization management, and discounts. Provider protests were often dismissed as self-interested whining, but thoughtful policymakers knew that as reimbursement shrank, there were legitimate reasons to worry about eroding cross-subsidies for teaching, research, charity care, and unprofitable services. Some of these worries were held at bay during an interlude when managed care weakened and hospital revenues bounced back. But resurgent health care costs and relentless budget pressure on Medicare and Medicaid reimbursement have renewed concerns about how hospitals mission-driven activities will be supported.
But a new . . . [Full Text of this Article]

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