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The article addresses that.

The real question is why new hospitals don't open up and charge less than these hyper-inflated retail rates and compete on price?

I'm only on page 3, maybe that's addressed too - but I doubt it.




I am going to go out on a limb and suggest barriers to entry.

You don't just get a group of skilled doctors together and say, "let's make our own hospital!"

Rent-seekers + regulation agencies = regulatory capture = barriers to entry = no competition.


You essentially cannot, in the United States, get a group of doctors together to form a hospital as of the passage of Obama's healthcare reform act. (Technically, you can, but that facility cannot become Medicare certified, which is usually a death knell.) [1]

[1] = http://www.ama-assn.org/amednews/2010/06/28/gvsa0628.htm




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