The “medical arms race” literature suggests that hospitals compete on the basis of:
a. costs.
b. costs and price.
c. quality.
d. (b) and (c) are correct.
Is (c) correct?
I haven't read the “medical arms race” literature. My hunch is that the answer is b.
To determine whether option (c) is correct, we need to understand the concept of the "medical arms race" and how hospitals compete with each other.
The term "medical arms race" refers to a phenomenon where healthcare providers engage in competitive behavior to acquire the latest medical technologies, facilities, and resources. This competitive behavior often stems from the desire to maintain or improve market position and attract patients.
Regarding the basis of competition, hospitals can compete on various factors. These factors may include costs, prices, and quality.
Option (c) states that hospitals compete on the basis of quality, which means that they strive to provide superior healthcare services compared to their competitors. This can involve aspects such as patient outcomes, patient satisfaction, safety measures, and the effectiveness of treatment.
However, option (d) states that both costs and quality are correct. This means that hospitals compete not only on quality but also on costs. This implies that hospitals aim to provide high-quality care while also being cost-effective.
Therefore, the correct answer is option (d), as hospitals can compete on the basis of both costs and quality in the "medical arms race."