Hospitals need to disrupt themselves, or be disrupted by others, to reduce cost and improve quality.

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The Stirling-based group said it expected the "fiberising" equipment to improve product quality and further reduce its cost base.

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The Affordable Care Act helps address this by changing the incentives for providers so that they start adopting best practices that will work to reduce cost while improving quality.

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Zitzewitz points out, is that it would increase cost and might reduce the average quality of judges.

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More investment is flowing to technologies such as upgraded power grids with smart meters that allow users to better manage their consumption of electricity, and energy-efficient buildings that reduce the cost of operations and improve human health through better air quality.

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The IRS makes the decision on what entities quality for such tax-preferred status, which can significantly reduce the cost of operations.

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"The whole ISTC initiative appears to be driven by political expediency to reduce the waiting lists, without regard to the quality of surgery and the cost to patients, " they said.

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