Sample Community Health Paper On Healthcare as a Competitive Market

Homework Question on Healthcare as a Competitive Market

  • During the 1980s the US deregulated the healthcare industry with the intent of allowing the competitive market drive down costs and improve quality.
  1. Explain why the healthcare system does not function like a true competitive market (think of what we know about demand for healthcare)?

Homework Answer on Healthcare as a Competitive Market

The healthcare industry is different from most of the industries in the world. Economists believe in the power of the free market to regulate quality and prices of goods and services. The American government embraced this idea to let the health care industry operate in a free market in the effort of managing the charge of care in the nation. However, thirty years down the line, the outlay of health care continues to rise.

Therefore, it is palpable that the healthcare industry cannot be regulated by the free market for various reasons. First, the demand for health services is more than the supply, thus giving healthcare providers the opportunity to price their goods and services highly. Consequently, many people in the world lack the necessary information concerning health care. As such, doctors and health care managers have the sole responsibility of deciding the eminence of care that the customers receive.

Homework Help

The patient’s lack of control for their personal health makes it hard for healthcare to benefit from the competitive market.Consequently, it is difficult to gauge the superiority of care because patients respond differently to health services. Different people can receive the same treatment and end up with different results because of various reasons. Lack of a standard measure of quality makes it hard for patients who are customers in health care to determine if a treatment or an intervention offers the value for their money.