Why does cost reduction hurt the patient


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Q: Health care materials manufacturers and distributors are moving from a supply oriented service to value oriented service and supply process. Why?  Explain the difference. To assist facilities in managing rising costs, a reduction of cost is necessary. However, this reduction comes at the expense of the patient/client. Why does cost reduction hurt the patient [or does it] and is this transition from supply to value oriented service really necessary? Defend your answer?

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