Which of the following trends or methods has since helped reduce the pricing rivalry that had intensified by the late 1990s?
A)Patients began accepting MCOs with "narrow networks" and MCOs had the upper hand in negotiating with hospitals for inclusion in networks
B)Hospitals removed brand identities
C)Hospitals dropped "centers of excellence" from their hospitals
D)Hospitals consolidating away from related products
E)Hospitals consolidated (conducted mergers)

Question

Quizplus · Accepted Answer

Hospitals consolidating through mergers has helped reduce pricing rivalry by decreasing the number of competitors in the market and increasing negotiating power with insurance companies. This trend has led to larger healthcare systems that are better equipped to negotiate prices and control costs. The other trends listed have either had no significant effect on pricing rivalry or have actually contributed to it by limiting patient choice or reducing competition among hospitals.

Which of the Following Trends or Methods Has Since Helped