Modular questions Assignment Example | Topics and Well Written Essays - 500 words

Modular questions - Assignment Example Intrinsically, price-fixing entails intra-competitors’ collusion to: sell products at the same price; apply the same formula when determining the selling price; give the same discounts; desist from lowering prices prior to notifying co-colluders; and to maintain similar price differentials among different order qualities, quantities and types. This is not the case with hospitals in GPOs since GPOs are mainly interested in making more discounts as a way of saving on operational and purchasing costs. This may only lead to improvement in quality services provision (Qiaohai and Schwarz, 2011). Conversely, one can also access resources and information relating to GPOs and their healthcare chain supplies. This is usually not the case with price-fixing organizations which collude to have prices fixed, stabilized, set highly, or discounted. The underhand nature of price-fixing organizations is brought about by the knowledge that price-fixing is a contravention of the federal and state laws. It is highly expedient that the proposal be approached with a lot of keenness since its execution can affect greatly, the future of the hospital. The kind of agreement that is being mooted does not capture the fact that other players in the healthcare industry will not be party to the proposal. This may bring about disparity in the physicians’ emoluments. The gravity behind this development is that although the artifice may help the hospital save 300,000 dollars, long-term negative effects will eventually spiral in, as physicians leave for greener pastures. This means that not only will the hospital incur heavier employee turnover, but that the same will also find it difficult to retain physicians. In respect to the foregoing, it remains necessary that the hospital sets rates that are commensurate to the rest of the market when determining physicians’ remunerations and payments for the ED calls; as