Dobson|DaVanzo

RAND Cited Al Dobson and Joan DaVanzo's 2006 Study on Cost-Shifting in Healthcare

Published Friday, August 30, 2019

RAND Cited Al Dobson and Joan DaVanzo's 2006 Study on Cost-Shifting in Healthcare

A recent RAND report titled “Prices Paid to Hospitals by Private Health Plans Are High Relative to Medicare and Vary Widely” (May 2019) is a considered examination of hospital payments in 25 states. The authors examined hospital payments across payers and found that there is a wide variation in prices paid by private health plans as compared to Medicare. To discuss these large gaps in prices, RAND posited two different interpretations, citing Al Dobson, Joan DaVanzo, and a former colleague’s (Namrata Sen) 2006 cost-shifting article’s conclusion as one possible theory to explain that as Medicare severely underpays hospitals, “hospitals are compelled to charge higher prices to their privately insured patients merely to stay afloat”.