The Market Model of Health Care - Caveat Emptor - Apr 2012
Faced with spiralling costs of healthcare, policy makers are increasingly looking to competition in health care markets in an effort to increase efficiency and quality of care and drive down costs. However health care markets are imperfect markets and the consequences of free competition in health care can conflict with policy goals. Because of market failure and because health is a major political issue most governments intervene in health care markets. In reality most countries rely on different mixtures of market mechanisms and regulation.