How did hospital payment methods in the 1960s and 1970s affect hospitals' incentives for efficiency and investment policy.

3. How did hospital payment methods in the 1960s and 1970s affect hospitals’ incentives for efficiency and investment policy.

Answer Due to ‘Medicare’s cost-plus-2% compensation for services’ scheme hospitals’ financial positionimproved in this time period. This worked as a ‘catalysts’ for hospitals as they...