State regulation of hospital revenue is one approach to cost containment on which there is voluminous evaluative data from the “laboratory of the states”; yet these data are sufficiently complex and ambiguous that they are claimed by both proponents and opponents of rate-setting as support for their respective cases. This paper summarizes the evidence, concluding that mandatory rate-setting has generally constrained hospital costs where it has been implemented. However, were rate-setting established in additional states, it is not clear that comparable results would be realized. It is still less clear that rate-setting would constrain health care costs more than would increased competition and selective contracting.
Skip Nav Destination
Research Article| April 01 1985
What Do We Know About Rate-Setting?
J Health Polit Policy Law (1985) 10 (2): 299–327.
Charles L. Eby, Donald R. Cohodes; What Do We Know About Rate-Setting?. J Health Polit Policy Law 1 April 1985; 10 (2): 299–327. doi: https://doi.org/10.1215/03616878-10-2-299
Download citation file: