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Competition in the health sector: a historical perspective
Journal of Health Politics, Policy and Law
|January 1, 1982
Summary
Current health policy proposals favor consumer competition but neglect supplier restraints. Removing these supply-side barriers is crucial for a true competition policy, though political challenges remain difficult.
Area of Science:
- Health Policy
- Health Economics
- Competition Law
Background:
- Current "pro-competition" policies in healthcare primarily focus on consumer behavior, neglecting the impact of supplier-side regulations.
- A comprehensive competition policy necessitates addressing and removing existing supply-side restraints imposed on healthcare providers.
Purpose of the Study:
- To analyze the historical evolution of supply-side restraints on physicians, dentists, and optometrists in a specific state.
- To assess the political feasibility of removing these restraints to implement a genuine healthcare competition policy.
Main Methods:
- Historical analysis of regulatory and policy changes affecting health providers.
- Examination of the role of interest groups and political environments in shaping healthcare market restraints.
Main Results:
- Supply-side restraints on health providers have historically been established and maintained due to favorable political environments and interest group alignments.
- While the current political climate is more open to challenging these restraints, success at state or federal levels appears unlikely.
Conclusions:
- Implementing a true healthcare competition policy requires dismantling supply-side restraints, which faces significant political hurdles.
- The historical precedent suggests that overcoming established provider restraints is a complex and challenging endeavor.