Interesting question - do you know where it came from? It doesn't read much like a GMAT question, so I wouldn't worry too much about this one:
-Choices C and D essentially say the same thing, just with D adding an extra step (raising prices in order to decrease patients, whereas C just says to decrease patients)
-In the stimulus, the second sentence starting with "Those" is a little too grammatically awkward to have been written by the GMAT.
-The third sentence of the stimulus doesn't make much sense, either - the situation is limited to Hospital Z, so to say that "in most cases this happens when patients are willing to be treated in this hospital" doesn't add much value...of course Hospital Z's problems will happen when (willing) patients attend Hospital Z, and not at any other time.
Because of all of those problems, I wouldn't be too concerned about this problem, as you wouldn't see this question on the GMAT...