Competition in Health Care

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Abstract
WE are rapidly approaching the point at which modern medicine can offer more than society can afford. New approaches are required to decide how much of our limited resources can be devoted to medical care. Such decisions may be made centrally, by government, or decentrally, through consumers' aggregate demand in a medical marketplace.Interest in the latter, "consumer-choice," approach has been on the ascendancy over the past two years, stimulated by a small but influential cadre of senators, congressmen, and academics.1 2 3 4 5 6 7 8 9 Advocates see a revitalized medical marketplace in which health-care providers and insurers actively compete for consumers' business on the . . .

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