Module 3, Part 2: Negotiations between Providers and Insurers
This week we’ll talk more specifically about how hospital prices are determined in the private insurance market.
Objectives for this week
- Define and explain the differences between hospital prices, charges, and costs
- Understand variation in hospital pricing and investigate price variation with the Health Care Pricing Project materials
- Describe the hospital negotiation process as a Nash bargaining problem and solve a simple version of a Nash bargaining model
Activities
- Solve for a Nash bargaining problem. The class worksheet is here.
Slides
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