Prediction: Valley Hospital Prices to Increase After Expansion

Jeff Stensland of the Medicare Payment Advisory Commission wanted to find out what makes hospitals increase their pricing.

It turns out that, surprise surprise, hospitals use market power to increase prices. I.e. they increases prices whenever they can.  If their market share is increased prices go up, if they have access to key technologies prices go up.

Valley hospital wants to expand to remain competitive.  My prediction is that the expansion will make the hospital more competitive.  It will have more market power and the prices will go up.

Say no to the expansion unless you want to pay more for services.
 
For more information see http://www.actuary.org/files/Actuarial_Update_March2013.pdf