October 14, 2020

Markets in Healthcare, some weaknesses and what to do about them

 The Role of Market Forces in U.S. Health Care

No market functions perfectly, however, and health care markets are more imperfect than most.

The article explains weaknesses of the market and some potential fine tunning to avoid them. And says: 

Many of the “single-payer” health care systems around the world have some market components, and many are actually expanding the role of markets. The more important question is how government and markets can complement one another. Essentially, we do not need to abandon markets — we can make them better. Specifically, relatively incremental actions, such as continued support for ACA  marketplaces, continued efforts to increase the effectiveness of transparency initiatives, procompetitive reforms to reduce the deleterious consequences of provider consolidation,5 and regulations to prevent the most severe market failures, such as limits on surprise billing or more aggressive caps on excessive prices in the commercial market, seem like first-order ways to improve market functioning with a relatively light touch.  If we fail to improve market functioning, stronger government involvement will most likely be needed.

My impression is that unless there is stronger government involvement there will no be equity of access, specially after covid pandemic.