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The government of Freedonia is considering tightening the regulations on the use of nursing staff. Under the new regulations, the minimum nurse staffing ratio in

The government of Freedonia is considering tightening the regulations on the use of nursing staff. Under the new regulations, the minimum nurse staffing ratio in Freedonia would need to increase by 50%. Assume that increases in nursing staffing ratios of this magnitude have been shown to significantly improve the quality of patient care, though at a cost of $200,000 per QALY gained. What effect would this regulation have on nurses' earnings, healthcare costs, and healthcare equity in Freedonia? Which groups in Freedonia would you expect to lobby for and against this legislation?

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