market failures result from asymmetric information between health insurers and care providers and between care providers and patients creating scope for supplierinduced demand and upcoding classifying patients into higher priced diagnostic codes empirical analysis suggests that no health care system performs systematically better in addressing these failures and delivering costeffective health care joumard et al the netherlands has opted for a system of regulated competition and private insurance with wideranging reforms implemented since the mid s to reinforce the role of market mechanisms