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2.1.2 Price Discrimination in Practice

Course video 16 of 68

In this module you will learn about the provider market in the health economy. The provider market mainly consists of the physician and hospital sectors. Combined they are largest source of expenditure in the health economy. The take-away messages from this module are the provider market has demonstrated significant monopoly and the ability to set prices as well as price discriminate. The market is also one of the most technology advanced, regulated and human capital intensive markets on the planet – all of which contribute to significant barriers to entry that reinforce market power. The skills gained from this module are an understanding of the physician and hospital’s voice of customer for a market research plan. In addition, the learner will gain an understanding of the range of sites of care as well provider reimbursement mechanism that are so critical for revenue generation within the hospital setting.

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