Question

Altman and Rodwin argued, that the medical system in the US exhibits neither effective competition nor effective government regulation. Would we better off if we decisively adopted one approach or the other? Explain.

Answer 1

Healthcare is an industry where participation of both public and private sector is needed. The healthcare cannot be left entirely in the hands of private sector or public sector of the country. A mixed path in the delivery of health care services is the best path forward. Thus it can be seen that U.S. neither exhibits effective competition nor effective government regulation. By far, this approach has proved to be successful for health care industry in the United States. The industry needs government regulation as well as effective competition for private sector to grow fairly.

Thus, it can be stated that it is not true that we will be better off if we decisively adopt one single approach.