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so in the last video we talked about the changing economic incentives of the consumers of health care in this video were going to talk about the changing economic incentives of the providers of health care now in more normal situations any business would have to be sensitive to the cost that they incur when they purchase a product or try to provide a service and compare that with the price that they are able to charge and the amount of people or customers that theyre going to be able to attract a grocery store for example must constantly think about how much produce to purchase at any given time and weigh that against the price they think theyll be able to charge customers and the number of customers they reasonably would expect to purchase those goods this is why for example grocery stores in places near a bakery tend to have smaller bakeries than a grocery store with no bakeries at all nearby prior to 1965 this was also true for hospitals one hospital in town might have an oncolog