Cost shifting and price discrimination are some of the ways that hospitals can use to maintain their status as academic medical centers.

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Cost shifting involves adjusting the prices charged to different payers or services to cover the shortfall from other areas, such as underpayments from Medicaid or Medicare, allowing hospitals to maintain financial stability. Price discrimination allows hospitals to charge different prices for the same service based on the patient's ability to pay or the payer's reimbursement policies, helping to subsidize the high costs associated with running an academic medical center, including research and education.

Cost Shifting and Price Discrimination Are Some of the Ways