Abstract
The nation's teaching hospitals, which have come under increasing pressures in recent years to change their traditional ways, face a future of reduced federal support and greater private insistence that they compete in the medical marketplace on the basis of price. The pace of these trends, which have been emerging gradually, has accelerated because of the Reagan administration's proposed sharp reduction in federal support of graduate medical education, the decided squeeze that this reduction will place on state governments, and the growing reluctance of private payers to subsidize the care of people other than their own employees, particularly in high-cost . . .

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