Which of the following best explains why hospital charges of $25 per aspirin are not unusual?
A) Government payments for Medicare and Medicaid patients do not cover hospitals' fixed costs, so these costs must be distributed to other patients and their private insurance providers.
B) Government exercises no cost control for Medicare and Medicaid, so hospitals get away with charging those patients $25 for an aspirin.
C) Pharmaceutical companies have monopoly power over hospitals, allowing them to charge high prices for medications.
D) Hospitals distribute a medically advanced form of aspirin that costs more to produce.
Correct Answer:
Verified
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