Healthcare has long been regarded as a commodity to be sold and bought for profit in certain quotas, and as a fundamental right for all human beings and thus deserved by all in other quotas. Depending on whichever leaning one chooses, the statement could mean different things to different people. However, in its literal sense health is both a commodity and a right; the market, as well as regulators, should be aware of this reality.
A perfect market is one where the forces of demand and supply are the dominant elements in determining the prices of commodities. Other factors such as lack of regulation and perfect knowledge by all the parties in the market serve to define an ideal market. Whereas a perfectly free market may not exist in the real world, its meaning in the above statement is well understood. Such a market means that there is little regulation around the establishment of hospitals which has resulted in hospitals being set up to meet demand in economically viable areas, which can pay off on the investments made. This means that resource-limited setups hardly have any private establishments, transferring the patient’s burden to government and missionary facilities which at a time are overwhelmed.
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While the free market ensures competition and thus prices are well moderated, the need for regulation to ensure that hospitals are equitably distributed and equity achieved in societies is necessary. Majority of healthcare staff are located in towns where facilities that provide care are. This makes it impossible for those in rural setups to access health easily. A possible regulation that defines what areas can have a hospital and which already have enough facilities for the population, could help reverse such trends of uneven distribution.
While regulation may appear to stifle innovation and curtail new market ideas, it is necessary for achieving an even distribution of healthcare facilities and subsequently workers.
