Increasing healthcare costs have been the subject of public discourse for years. Costs have a major effect on the healthcare system. Higher costs lead to the lower accessibility of healthcare services. Higher costs also lead to lower coverage of healthcare insurance. Also, with higher costs, a higher quality of healthcare is not guaranteed. Thus, critics and analysts are focusing their attention on major reforms that address quality and cost concerns in the healthcare system. One of these possible major reforms is free-market healthcare. At present, ongoing debates on the implementation of free-market healthcare tackle issues regarding the potential benefits and risks of such a reform. This reform presents opportunities for improving the healthcare system, but also brings risks that may worsen the system.
In efforts to improve the healthcare system, free-market healthcare reform is considered. This reform has the potential to address issues of cost, quality, and efficiency. However, the reform also adds to the challenges that must be carefully integrated into strategic plans for implementation.
What is Free-Market Healthcare?
Free-market healthcare is a system where there is minimal or no government regulation. In this minimal regulation, healthcare providers are free to provide services without needing to satisfy strict regulatory standards and requirements. As a result, healthcare providers do not need to comply with restrictive government licensing.
Free-market healthcare has significant benefits. These benefits address some of the issues present in the healthcare system today. However, free-market healthcare does not ensure quality of healthcare.
Quality in Free-Market Healthcare
Free-market healthcare can potentially improve the quality of healthcare services. Advocates argue that the free market compels healthcare providers to improve their services to remain competitive. Such a situation can be achieved as the healthcare system becomes privatized and adopts better business models.
However, in free-market healthcare, the adoption of current business models would likely lead to the downsizing of healthcare organizations. Critics also argue that these business models typically involve cost-cutting policies. Even though healthcare providers would be competing against each other, the downsizing and cost cutting could lead to lower quality of health care.
Costs in Free-Market Healthcare
In free-market healthcare, costs could be reduced. Advocates say that lower costs would be linked to competition among providers. However, critics point out that actual demand for healthcare is inelastic. Healthcare services would be needed even if prices remain high. Demand for healthcare services would continue to increase over time as the population grows, even when healthcare costs remain high. The cost of healthcare would still remain high because demand would remain high. Thus, it would be imperative for the government to regulate healthcare costs and ensure the quality of services.
Efficiency in Free-Market Healthcare
Advocates argue that the implementation of free-market healthcare can potentially lead to an improvement in the efficiency of the healthcare system. However, efficiency could decline in the free-market system because healthcare providers would still benefit from high inelastic demand even when healthcare efficiency and quality remain low.
Final Note
The free-market healthcare debate considers the factors of supply and demand, and cost and quality of healthcare services. A single payer system could be better because it can ensure better coverage for all people. This coverage is possible because of governmental control of funds. Even though free-market healthcare has significant potential benefits, it does not guarantee cost-effectiveness and quality of health care. Thus, solutions like the single-payer system are potentially better options.
References
- Dalton, T. M. (2023). Challenges to Market-Based Healthcare for Consumers, Insurers, and Society. In Challenges in Classical Liberalism: Debating the Policies of Today Versus Tomorrow (pp. 207-225). Cham: Springer International Publishing.
- Dubey, A., & Tiwari, A. (2023). Artificial intelligence and remote patient monitoring in US healthcare market: A literature review. Journal of Market Access & Health Policy, 11(1), 2205618.
- Mishra, M. (2023). Locating the role of altering nature of public healthcare as a ‘commodity’ in a market society. International Journal of Human Rights and Constitutional Studies, 10(2), 147-162.
- U.S. Centers for Medicare & Medicaid Services – A quick guide to the Health Insurance Marketplace.
- World Health Organization – Universal Health Coverage.