Price controls are the limits set by the government that
determine how high any firm can charge a customer for their goods
and services.
Price controls can be either be price ceilings or price floors.
Price floors allow firms to charge higher than the equilibrium
prices and they give them market power. While price ceilings do not
allow them to charge a price higher than the equilibrium
price.
A price control having variety of effects can help
organization's to gain significant market powers. Hence most
healthcare organizations are said to have market powers.