Have you ever wondered why you can’t talk to your doctor by phone or by email?
Or why a doctor can’t examine you in your own home using a phone app?
Or why specialists at our top hospitals aren’t using telemedicine for long-distance examinations of patients all over the country?
...In each of these cases normal market processes have been suppressed by unwise government policies.
And, that’s just the beginning.
It turns out that the most serious problems in the health care marketplace are almost always the result of ill-conceived public policies.
...The Trump administration has produced an astonishingly bold document: Reforming America’s Healthcare System Through Choice and Competition.
This is the first time any administration has explicitly acknowledged that the most serious problems in health economics arise not because of market failure, but because of government failure.
It is also the first time the federal government has committed to the idea of liberating the medical marketplace.
...Space does not permit a full discussion of all the issues raised in the new report. (It’s 124 pages long).
But I would be remiss if I didn’t mention the role of government in promoting monopoly.
- State certificate-of-need laws are preventing new hospitals and other facilities from entering the market and competing with established ones.
- Federal law is preventing doctors from opening specialty hospitals that compete against traditional, full-service hospitals.
- Because Medicare and Medicaid frequently pay more for physician services performed at hospitals than the same services in doctors’ offices, an increasing number of doctors are becoming hospital employees.
- The same anti-trust laws that prevent doctors from combining and colluding on price are being disregarded as hospitals gobble up their competitors through mega mergers.
If health care functioned like a normal market, there would be centers of excellence for cancer, heart care, diabetes and other chronic conditions.
Patients managing their own accounts would benefit from competitive provision of services and they would be able to use the money for other purposes if they got better and reduced the costs of their care.
The only thing standing in the way is unwise public policy.
In health care, Ronald Reagan’s aphorism is more apt than ever: Government is the problem, not the solution."
Read on.
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