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Book Review
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Volume 332:1313 May 11, 1995 Number 19
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Cost Shifting in Health Care: Separating evidence from rhetoric

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By Michael A. Morrisey. 89 pp. Washington, D.C., AEI Press, 1994. $19.95. ISBN 0-8447-3860-3.

Michael Morrisey presents a lucid evaluation of cost shifting, especially in hospital and physician markets, within a classic microeconomic framework. He tackles three fundamental questions: Do providers engage in price discrimination among payers (static cost shifting)? Are differences in price a reflection of differences in the cost of providing health services? And most important, do providers charge higher prices to some consumers because of lower prices charged to other payers, such as Medicare or Medicaid beneficiaries (dynamic cost shifting)?

The book proceeds logically from a clear presentation of relevant microeconomic theory to a review of dynamic cost shifting in hospital . . . [Full Text of this Article]




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