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The role of the capital markets in restructuring health careby: J. B. Silvers
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AbstractEnfranchisement of the formerly uninsured through Medicaid and Medicare plus the continued growth of private health insurance have given marginal providers the cash flow that allowed the dynamic growth in assets invested in health care while substantial subsidies lowered their financing cost. Yet it is not clear whether access to new sources of funds precipitated the restructuring of health care or the demand for capital was simply the result of fundamental need. Kenneth Arrow implicitly assumed that capital was an integral part of the production of health services, but he did not particularly distinguish it from other factors.
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