Marketplace asks an important question–one that’s difficult to answer. I feel that the majority of hospital advertising is ineffective and that much of the annual billion dollar + spend is wasted (mainly because they’re all the same; try hard to find ads that don’t focus on hospital reputation)–but I’d be willing to be proven wrong.
While improved reimbursement rates are good for hospitals, it is important to remember that those additional dollars rarely come from insurance company profits–they come from a patient’s increased premiums, co-pays, deductibles, etc.