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Which of the following is not an example of price subsidization or cost shifting? 1. Medicare reimbursement is below the cost of organization yet the

Which of the following is not an example of price subsidization or cost shifting?

1.

Medicare reimbursement is below the cost of organization yet the organization still makes a profit from its other payors.

2.

In order to attract business a hospital offers its services at a marginal cost rate.

3.

A single payor dominates the market and forces healthcare providers to accept below cost reimbursement. The healthcare providers charge other less dominate payors higher rates to compensate.

4.

None of the above

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