The Center for Health Care Economics Dr. Taheri and Professor Butz s early work uses detailed cost accounting data on the hospital s trauma center, which Taheri directs.
Subsequent analyses look at the entire hospital.
A recurring theme is that the bulk of any hospital s costs are fixed, and that marginal costs are low. Dr. Taheri and Professor Butz also argue that one role played by managed care at the UMHS is to enable high capacity utilization. The bulk of Michigan s HMO patients live within 20 miles of the hospital, and because of the nature of the payer s contract with the hospital, all of these patients most of whom are low acuity are steered to this hospital. Paul A. Taheri, David A. Butz, et.