What is the main reason why even large metropolitan areas tend to have a few large hospitals
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What is the main reason why even large metropolitan areas tend to have a few large hospitals instead of many smaller ones?
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Doctors prefer to work in large teams instead of in small practices or clinics.
Large hospitals enjoy greater economies of scale than small hospitals do
Most state laws limit the number of hospitals per capita in urban areas.
Insurance companies will only deal with large hospitals, not smaller ones.
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Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
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