Healthcare expenditures vary widely across different areas.
The economist has an article on the causes.
For Medicare patients [where prices are fixed by the federal government], most variation comes from differences in patients’ health status [consumption] and the overuse of a
particular service, post-acute care, [e.g., nursing homes].
For privately insured patients,
price gaps are to blame. ... In areas with a dominant hospital chain, prices are likely to be
higher. The IOM reports that price mark-ups account for 70% of the
variation in commercial spending.
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