n What necessarily happens to average quality in a hospital

n

What necessarily happens to average quality in a hospital market when the generosity of insurance coverage increases? How does this relate, if at all, to the data appearing in Chapter 1 on increases in hospital spending through time in the hospital sector?

Solution

Will be able to answer only first part as data of chapter 1 needed for second part is not available

If generosity of insurance coverage increases it will have many effects on the health care industry. The quality of the medical service provided will increase as insurance company ae ready to pay more by increasing the coverage. Many disease will were not covered may be covered now which will increase research opportunities for these disease as companies will earn more profit by finding cure for such diseases.