The Free Market is Working in Health Care

By ROGER STARK  | 
Oct 7, 2019
BLOG

Last week, The Wall Street Journal ran an op-ed written by two law school professors, Charles Silver and David Hyman, that identified the free market at work in health care delivery. (here)  Large companies, such as Walmart and CVS Health, are opening outpatient clinics that will compete not only on quality, but also on price and accessibility.

At Walmart, a doctor visit costs $40, a dental cleaning $25, and a laboratory test for a urinary tract infection $10. It is anticipated that patients will pay for these things out-of-pocket since the prices are much lower than most insurance deductibles.

Competition will occur as other companies, for example Walgreens and urgent care centers, establish their own clinics with easy accessibility and reasonable prices.

These free market solutions are sprouting up outside of government regulations and control. This will allow costs to remain low while increasing choices for patients. These innovations are generated by patient demands. They will grow through a grassroots movement and not by a top-down, one-size-fits-all government program.

If allowed to flourish, the free market can work in health care, just like it works in virtually every other economic area.

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