In a Town with Only One Hospital, the Largest Employer

In a town with only one hospital, the largest employer (a local manufacturing plant) now offers health insurance to its employees. What would be the expected change to the price and quantity of medical services?

A) Equilibrium price and quantity would not be affected.
B) Equilibrium price and quantity would rise because supply and demand has decreased.
C) Equilibrium price and quantity would fall because supply has decreased but demand has increased.
D) Equilibrium price and quantity would rise because demand has increased but supply has remained constant.
E) Equilibrium price would fall and quantity would rise because demand has decreased and supply has remained constant.