Stanford Researchers Discover that Less Competition Drives Prices Higher

0 3009

Chalk one up for free market capitalism here. You shouldn't really need to do a study to figure this out. It's an obvious.

"Medical practices in less competitive health-care markets charge more for services, according to a study conducted by researchers at the Stanford University School of Medicine and the National Bureau of Economic Research."

The reason most governments that have centralized the health care industries in their countries have virtually outlawed private health care is because they hate competition. 

They hate the idea that a private option could show people that better more efficient service could be performed by private groups competing for the same customers.

In Canada, for instance, it is illegal for private groups to compete with government run healthcare. Yet in many regions, like Alberta, wait times are abysmal. Yet, because the govt hates competition, the very people that this healthcare system is supposed to help are being endangered.

A better policy would be to allow private competition if wait times exceed 2 months. Sounds reasonable, however competition would reveal how inefficient govt run (anything) is, so it likely won't happen.

"Instead of continuing to pump money into the same system and hoping for different outcomes, it’s the perfect time for Alberta to look to the private sector to come aboard as a partner or alternative and institute the sort of patient cost-sharing policies commonly found in other universal health-care systems. Done correctly, neither of these policies would fundamentally alter the universal nature of the health-care system. Instead, the private sector would help take some pressure of the government, while the cost-sharing would help temper demand by reminding patients to use these scarce and expensive health-care resources responsibly."

It is immoral to force people to use specific health care. The only moral option is to allow people to be free to use any solution necessary to cure their ailments, this includes allowing doctors to provide services they feel will best help sick people, even if those services are outside the government's options.


Related Articles


Recommended Reading

There is no such thing as society. There are individual men and women, and there are families. And no government can do anything except through people, and people must look to themselves first. It’s our duty to look after ourselves and then, also to look after our neighbour.

- Margaret Thatcher