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Notes
1 Some studies have shown the costs of surgery to be higher at teaching hospitals. However, many of these studies use data on the amount Medicare paid to hospitals. Given that the government subsidizes teaching hospitals, it is possible that Medicare pays more for services at teaching hospitals as a form of subsidy. Thus, studies using Medicare data claiming to show higher costs of surgery at teaching hospitals are suspect. To show that costs are higher at teaching hospitals, non-Medicare data needs to be examined (see Birkmeyer, 2002 and Taylor, 1999).2 Number is adjusted with the GDP implicit deflator for the third quarter of 2001. The number is based on a study by Miller (1990), adjusted for inflation.
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