A paper on the link between legislative politics, hospital behavior, and health care spending by Professor Eleanor Powell was featured in the New York Times.
Eleanor Powell and her co-authors investigate the passage of the 2004 Medicare Modernization Act and Section 508, which congressional leaders used to attract votes. The provision allowed hospitals to apply and receive increases in Medicare payments. They find that hospitals represented by members of the House who voted for the bill were significantly more likely to receive the 508 waivers.
These hospitals received higher payments and generated higher revenues as a result of the waivers. In addition, members of Congress who represented 508-waiver hospitals received a 65% increase in contributions from individuals working in the healthcare industry
These results show that congressional leaders add targeted provisions to entice reluctant legislators but, more importantly, show a link between politics and Medicare politics that can dramatically affect health spending.https://www.nytimes.com/2017/10/25/upshot/the-unhealthy-politics-of-pork-how-it-increases-your-medical-costs.html