A competitive market is one that allows for easy entry and exit: a market in which companies are generally free to enter or exit at will. This does not describe the healthcare market in the United States. There are some assumptions that the competitive market model works under some assumptions, first and foremost is that the consumer/patient has complete information about the nature of the services requested, the expected results of his decision and the benefits obtained from the service. This is not true in healthcare, often where the patient operates at a distinct information disadvantage when needing healthcare services such as insurance. If a patient purchases health insurance, they often do not have enough information to ascertain whether they have purchased a quality plan. Second, consumers/patients and providers (doctor, health insurance) act independently. This does not happen in healthcare due to the information asymmetry that exists; patients must depend on decisions made by their doctor or healthcare professional acting on their behalf as their healthcare agent or gatekeeper. Sometimes doctors own diagnostic facilities or invest in healthcare organizations, which affects their ability to be impartial. Third party consumers bear the financial impact of their decision and are aware of the price differences; most patients are insulated from the true cost of healthcare due to a third-party payer bearing the financial burden of the decision to receive medical care. Shi and Singh say that even if a patient wanted to know the cost of services, it is sometimes difficult because of item-based pricing. Fourth, there is unbridled competition among suppliers regarding price and quality. Unrestricted access to the healthcare market is b...... middle of paper ....... Looking Back to Look Forward: Healthcare Reform:. Retrieved December 16, 2010, from KPLU News website: http://www.kplu.org/health_care_script.htmlFederal Trade Commission and Department of Justice. (2004). Improving health care: A dose of competition. Washington, DC: United States Government Printing Office.Haft, H. (n.d.). Is healthcare a right or a privilege? - health policy. Retrieved December 17, 2010, from BNET website: http://findarticles.com/p/articles/mi_m0843/is_1_29/ai_96500897/Shi, L., & Singh, D. A. (2008). Providing health care in America a systems approach (4th ed.). Sudbury, MA: Bartlett and Jones. United Nations. (1976, January 3). International Covenant on Economic, Social and Cultural Rights. Retrieved December 17, 2010, from the website of the Office of the United Nations Commissioner for Human Rights: http://www2.ohchr.org/english/law/cescr.htm
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