Markets only work when transparent prices reflect the desires of consumers and the costs of producers. While the third-party payer system creates complications, this principle holds for healthcare markets. Regulatory reforms that promote widespread price transparency offers Congress and the Trump Administration an opportunity to meaningfully bend the healthcare cost curve and improve the quality-of-care patients receive.
Inefficiencies plague our current healthcare system. Politicians are quick to blame these problems on the market and subsequently advocate for ever greater government control. But government programs, which are already major players in the healthcare market, provide lousy insurance for patients and undermine the viability of doctors and hospitals. Expanding the government’s role will only worsen these problems.
Rather than expand the government’s role, reforms need to address the price opacity problem that is obstructing the ability of healthcare professionals to deliver higher quality care to patients at lower costs. The price transparency problem afflicting hospitals exemplifies the problem.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.
Greater Price Transparency Will Improve Affordability
Wayne H Winegarden
Markets only work when transparent prices reflect the desires of consumers and the costs of producers. While the third-party payer system creates complications, this principle holds for healthcare markets. Regulatory reforms that promote widespread price transparency offers Congress and the Trump Administration an opportunity to meaningfully bend the healthcare cost curve and improve the quality-of-care patients receive.
Inefficiencies plague our current healthcare system. Politicians are quick to blame these problems on the market and subsequently advocate for ever greater government control. But government programs, which are already major players in the healthcare market, provide lousy insurance for patients and undermine the viability of doctors and hospitals. Expanding the government’s role will only worsen these problems.
Rather than expand the government’s role, reforms need to address the price opacity problem that is obstructing the ability of healthcare professionals to deliver higher quality care to patients at lower costs. The price transparency problem afflicting hospitals exemplifies the problem.
Read more in Forbes.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.