America’s Transition to New Healthcare Policy: Applying Airline Pricing Models to Healthcare Providers

Authors

Westin Leavitt, Brigham Young University
Dr. Mark Hansen, Brigham Young University

Keywords

healthcare policy, airline pricing models, healthcare providers, ACA, Affordable Care Act

College

Marriott School of Management

Department

Management

Abstract

As America’s healthcare industry becomes increasingly regulated under the Affordable Care Act (ACA), the economic effects of regulation are still in question. One of the most puzzling questions is the price at which hospitals and clinics will charge for treatment. Because hospitals’ costs and prices are usually proprietary knowledge, we suspect that hospitals are participating in first-degree price discrimination* to maximize profits. In addition, we seek to explain how the ACA’s partial reimbursement rates cause greater financial stress on hospitals by forcing them to cost shift**.

Recommended Citation

Leavitt, Westin and Hansen, Dr. Mark (2014) "America’s Transition to New Healthcare Policy: Applying Airline Pricing Models to Healthcare Providers," Journal of Undergraduate Research: Vol. 2014: Iss. 1, Article 993.
Available at: https://scholarsarchive.byu.edu/jur/vol2014/iss1/993