Which of the following is true about hospital industry profits from 1980 to 2000 and a five forces analysis?

Question

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A five forces analysis suggests that industry profitability is influenced by bargaining power of suppliers, threat of new entrants, bargaining power of buyers, threat of substitutes, and rivalry among existing firms. Looking at the hospital industry, during this period there was an increase in the bargaining power of suppliers such as pharmaceutical companies due to increased regulations and patent laws, which caused hospitals to pay higher prices for drugs. The threat of new entrants increased due to the rise of outpatient clinics and ambulatory surgery centers. The bargaining power of buyers increased as insurance companies consolidated and negotiated lower reimbursement rates for hospitals. The threat of substitutes increased as more procedures could be done in outpatient settings. Finally, rivalry among existing firms increased due to the consolidation of hospital systems. All of these factors contributed to a decrease in hospital industry profits during this period.

Which of the Following Is True About Hospital Industry Profits