Research on competition in the market for health services: problems and prospects

The dramatic and continuing rise in price levels and aggregate expenditures for health services has led many researchers to conclude that, for a variety of reasons, there are insufficient competitive forces present to permit this market to function properly. One solution under consideration is the introduction of stronger competitive forces into the market for health services to restore appropriate incentives to consumers and providers. This paper identifies research needs and develops recommendations for critical research that would provide indications to policy makers of the potential effects and possible consequences of implementing various procompetitive approaches under consideration.