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When the government places price controls on hospitals and physicians, what is the next step the...

When the government places price controls on hospitals and physicians, what is the next step the government must take to make those controls effective?

a. Inform the purchasers that it has imposed such controls.

b. Impose global budgets to prevent increased numbers of services.

c. Limit increases in the number of hospitals and physicians.

d. Encourage entry of hospitals and physicians into the price-controlled market.

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Answer #1

Option B is correct as after placing the price control on hospitals and physicians, the government must impose global budgets to prevent increased number of services to make these price controls more effective in the healthcare industry.

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