Price Competition Can Lead to Quality Competition

Price Competition Can Lead to Quality Competition

GUEST EDITORIAL By John C. Goodman, The Heartland Institute In our third-party-payer health insurance system the price for care is typically set by entities outside the doctor-patient relationship. As a result, providers rarely compete for patients based on money prices. Potentially they can compete on the time price of care, on amenities, and on quality. Yet providers rarely compete on quality. In those health care markets where third-party payment is nonexistent or relatively unimportant, providers…

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