I received a better understanding and became interested in health care policy while studying business at the George Washington University MBA program. Lessons learned is that in health care, what we currently have is a laissez-faire economy of sorts. Laissez-faire is one in which government does not interfere with the economic decisions and allows companies and corporations to manage themselves with little or no government oversight. Can anyone see a similarity with this behavior and what recently happened with investment banks, savings and loans and the mortgage market? The events that lead up to the collapse of these institutions and our economy is a result and exactly what happens when government fails to regulate and monitor industry. This type of hands off policy however has been the standard operating policy of the Bush administration. In health care too, do we have a lack of a truly competitive market economy. The health industry is dominated by a relatively few number of powerful corporations. There is little or no competition among each other. In economics they are not true monopolies but rather considered oligopolies because there are more than one major players. Yet each in their own way share in common outcomes and long range objectives. They more often then not work together for their financial well being than they compete against each other. Does anyone remember the head executives of all 5 U.S. tobacco companies testifying in unison before congress several years ago?
To believe that competition will bring the price of health care down is just kidding oneself.