Hospitals worldwide command the majority of any countries’ health care budget. Reasons for these higher costs include the aging of the population requiring more intensive health care treatments provided in hospitals, the relatively high costs of labor in this labor intensive industry and payment systems that may encourage inefficient behavior on the part of hospital managers and physicians. Governments are seeking to instruments to mitigate this cost rise. Liberalizing hospital markets, deregulation, changing budget systems and changing ownership are only a few examples of attempts to make hospitals more efficient.

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