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What is one function of the third paragraph?
The third paragraph provides a different view of the same issue, but does not contradict the claims made by Medicare and the insurance companies.
To contradict means to provide information that is contrary to what was given. However, the facts in paragraph one are agreed upon by all sides so there is no contradiction; these facts simply have different meaning to Medicare and the hospitals.
The third paragraph provides a different perspective of the problem described in the second paragraph, not an example.
The fourth paragaph suggests several solutions for the problem of hospital readmissions as a whole, which is described throughout the passage and not in the third paragraph alone.
The hospitals, whose point of view is described in the third paragraph, do not dispute the high rate of readmissions described in the first paragraph. In fact, for the hospitals this condition is beneficial.
The third paragraph presents the hospitals' view of readmissions which is completely opposite to the one presented in the second paragraph - the view of Medicare and the insurance providers.