Unravelling a riddle the healthcare enigma

Bronwyn Howell

No 372305, Competition & Regulation Times from New Zealand Institute for the Study of Competition and Regulation

Abstract: Why does society appear to tolerate less-competitive behaviour amongst medical practitioners when it doesn't do the same for panelbeaters? The explanation typically offered in health policy literature is that extensive treatment-subsidies provided by governments and insurers make healthcare markets fundamentally different, resulting in over-much care being consumed by individuals who do not pay its full cost. Consequently, if there is a relaxation in competitive standards resulting in higher prices to patients, then consumption will fall to a level much closer to the unsubsidised optimum. By comparing and contrasting the health/vehicle insurance and healthcare/vehicle-repair markets, Bronwyn Howell begins unravelling the healthcare competition enigma

Date: 2008-03-01
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Persistent link: https://EconPapers.repec.org/RePEc:vuw:vuwcrt:372305

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