The economy has a major influence to the various facets of our society, and the healthcare industry is but one of them. The healthcare industry is a crucial part of the development agenda for the United States government as well as other administrations across the globe. Therefore, within the healthcare development and operation strategy, market competition issues emerge and have an impact on the outcomes health outcomes. The drive of this paper, therefore, is to examine the existing market competition forces and find out how they impact the healthcare industry. Similarly, the paper will investigate the economic concepts applicable in healthcare and have an influence on the outcomes.
Market models and concepts
Healthcare exists in the economic fora, despite the fact that it does not fit in the general rules of economic competition; there are economic aspects that impact the industry. For instance, healthcare does not conform to the basic assumption drivers of the economy such as the law of demand and supply. However, there are various perspectives that compose the healthcare that is determined by the economic trends as well as market forces and impact the healthcare systems. They include:
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Antitrust policies
Antitrust policies are put in place to foster thecompetitiveness of the healthcare industry and eliminate aspects of monopoly. The fundamental aspect of the antitrust policy is the engagement of the market and its competitive nature to develop efficiency through competition that occurs (Berenson, 2015) . Through such a competition, the healthcare industry is the obligation of market influence to providing high-quality services at low prices. The recognition that health providers, physicians, and hospitals are at the risk of a monopoly that raises the cost of healthcare, antitrust policy ensures that market competition influences the out comes in the sector.
Market competitive technology
Like all other sectors of the society, healthcare is influenced by the technology that exists. It's especially crucial for the improvement of healthcare services as well as the diagnosis of disease and treatment. Technology as an aspect of the economy is dynamic, and it changes continuously. Therefore, the presence of technology in the various aspects of healthcare has an impact on the direction that healthcare takes (Folland, Goodman and Stano, 2016). Market competitive technology ensures that the health and Medicare perform efficiently. The market competitiveness ensures that low costs are applied to avoid exploitative tendencies of monopoly in healthcare.
Government regulations
Governmental regulations are part of the economy as much as the government has a stake in the healthcare. It stems from healthcare influencers such as insurance and pharmaceutical industries that have a large influence in the health industry. Therefore, the government regulation stands in perspective of protecting the interest of the consumers/ patients who may be exploited by the industry. For instance, the insurance regulatory policies that exist as well as the drugs regulation policies have an influence on the economics of health care. In another perspective, the regulations allow for healthy competition between the various companies that offer insurance as well as manufacture drugs respectively (Enthoven,2014). The market competition that results ensures the efficiency and affordability of healthcare to all citizens in the United States.
Healthcare industry is not in isolation of economic market competition aspects, but it resides concurrently with the economy. As illustrated, it’s imperative for the healthcare to evolve around the economic perspectives in order to provide quality, efficient and affordable services to its clients. It’s imperative therefore that the management of healthcare industry be informed by market competition forces and adjust to the flow of that market. As a market by itself, managed as well as the antitrust policies should be enforced wisely and systematically in the industry.
References
Berenson, R. (2015). Addressing Pricing Power in Integrated Delivery: The Limits of Antitrust. Journal of Health Politics, Policy and Law , 40 (4), 711-744
Enthoven, A. C. (2014). Theory and practice of managed competition in health care finance . Elsevier.
Folland, S., Goodman, A. C., & Stano, M. (2016). The Economics of Health and Health Care: Pearson International Edition . Routledge.
