• Checking up on hospital price inflation: Rising medical costs are not a foregone conclusion

    6 days ago - By FRED

    Many people are concerned with the persistent rise in medical costs. But as long as medical services are delivered by people, economic theory tells us that rising costs are normal: As technological progress makes the production of goods less expensive, the production of services becomes comparatively more expensive. Of course, technological progress can also occur with the delivery of services. A good example is the introduction of ATMs, which have dramatically reduced the cost of simple bank transactions.
    The delivery of medical care has not seen such cost-saving technological advances...
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