At one time, public and private payers relied on cost-based reimbursement to compensate health care providers. However, cost-based reimbursement resulted in dramatic increases in health care spending, because providers had no incentive to shop around for the least costly goods or devise the most efficient way to provide services. In response, payers have largely abandoned cost-based reimbursement, and adopted other strategies. One common strategy is to pay the estimated average market price for the goods or services that have been provided.