Physicians are sometimes accused of raising their payment demands to supracompetitive levels. Conversely, payors are sometimes alleged to use their market power to pay physicians subcompetitive rates. CRA has performed statistical analyses of payment rates in both of these situations. Using econometric techniques we compare physician reimbursement to peers in the same geographic area or in other areas, or measure changes in reimbursement over time.
Assessing umbrella pricing incentives
When collusive agreements involve a subset of firms in an industry, they may create the incentive and ability for firms that are not participants in the cartel...