Dramatic changes resulting from competition can lead to systems of care that are more efficient and effective. Market changes already underway are creating pressures to reduce costly excess capacity and lower prices. The Unique Nature of Healthcare Healthcare delivery is fundamentally different from the production and distribution of most goods and services. Healthcare is not a commodity. Nor is it a typical service.
Health care is, in fact, quite different in three important ways.
First, most healthcare services are provided when people are sick, preoccupied with worry, and highly dependent on a trustful relationship with professionals. Second, healthcare is different from a typical commodity because it cannot be allocated solely on ability to pay. Most Americans are unwilling to let people go without a service that is essential to life and well-being. The Risk of Dysfunctional Competition in Healthcare Competition in healthcare without explicit and enforceable ground rules is likely to be a dysfunctional competition. It will be based more on avoiding the uninsured and high-risk populations than on treating them efficiently.