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Related Experiment Videos

Defining competition in markets: why and how?

A B Bernstein1, A K Gauthier

  • 1Alpha Center, Washington, DC 20036, USA.

Health Services Research
|December 29, 1998
PubMed
Summary
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Measuring healthcare competition is challenging due to inadequate definitions of markets and competitors. Future research needs better data and definitions to accurately assess the evolving healthcare landscape.

Area of Science:

  • Health economics
  • Market competition analysis
  • Healthcare policy

Background:

  • The Robert Wood Johnson Foundation convened a 1996 meeting to discuss the measurement of competition in the healthcare market.
  • Diverse stakeholders, including economists, policymakers, and industry players, have varied perspectives on defining healthcare markets and products.

Purpose of the Study:

  • To explore the multifaceted perspectives on measuring competition within the healthcare marketplace.
  • To identify inherent complications in defining markets and products by various stakeholders.

Main Methods:

  • Discussion and synthesis of viewpoints from a 1996 Robert Wood Johnson Foundation meeting.
  • Analysis of stakeholder definitions of healthcare markets, products, competitors, and geographic areas.

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Main Results:

  • A consensus exists that current definitions and measures of healthcare competition are inadequate.
  • Inadequacies stem from limited data used in developing definitions and measures.
  • The diverse applications of competition analyses further complicate the creation of a unified database.

Conclusions:

  • Future research must develop improved definitions for emerging healthcare structures and competition measures.
  • A public use data file, similar to the Area Resource File (ARF), is recommended to consolidate HMO, provider, employer, payer, and sociodemographic data.