Just like health insurance, the healthcare sector requires regulatory reform aiming at respecting and protecting the individual rights of healthcare consumers and providers—patients, doctors, healthcare workers, and healthcare companies. Here are a few examples:
1. Repeal regulation prohibiting healthcare providers from competing on price.
Healthcare providers competing on price is one of the most powerful instruments for making your healthcare dollars go further. Repealing regulation prohibiting price competition will make shopping for routine and minor healthcare procedures just like shopping for other products and services: you compare the quality and price of different providers and make your decision based on what provides you with the best quality for your money. It will also attract new players to the healthcare marketplace who see opportunities where high prices are signs of large profits. They anticipate taking market share by lowering prices, reducing healthcare costs for you, the consumer.
2. Repeal regulations at all levels of government pertaining to the permitting, building, and managing hospitals and other medical facilities.
Permitting, building, and managing healthcare facilities is surrounded by a vast network of regulations, including but not limited to Certificates of Need (CONs), which limit the number and size of healthcare facilities in a particular area for fear of creating an oversupply. Repeal will increase the number of facilities and bring down costs through increased competition.
3. Repeal state and local government licensing requirements for healthcare providers.
Licensing is considered by many essential to the welfare statist healthcare safety net and talks about repeal is often met by fear and distrust. But repealing government licensing doesn’t mean that accreditation goes away. On the contrary, it creates a marketplace where doctors and other healthcare providers voluntarily seek out private accreditation that reflects their skills and enhances their reputation. Repealing licensing requirements will also improve mobility of healthcare professionals, as they may practice anywhere in the country, unrestricted by state specific licensing requirements. And it will facilitate the expansion of telehealth, where the provider may be anywhere in or outside the country.
4. Repeal privacy and medical records regulations.
Keeping control of your medical records is important. Repealing privacy and medical records regulations will allow for more efficient record keeping and enable you and healthcare providers to freely negotiate how your records are securely collected and stored without government interference.
To reiterate, regulatory repeal doesn’t negate the need for accreditation, privacy and other rules. But such rules and guidelines should be developed and enforced voluntarily by the stakeholders in the marketplace. As we outlined when covering safety nets, under capitalism independent, market-based associations and companies provide varied and innovative oversight that far surpasses what the government regulatory monopoly forces on us today. The drivers for quality are the competitive pressure of the marketplace and the need to build up and maintain a good reputation. As we’ve repeatedly pointed out, you don’t stay in business for long with less than a 4-star rating. Just as the information revolution has spawned a huge and constantly improving unregulated market for online ratings and reviews when it comes to such things as products, restaurants and drivers, in a capitalist social system independent, reputable associations, companies, and individuals meet the demand for quality watchdog and accreditation services either for free or for a fee.
In a free market, you can find safe, high-quality, economical healthcare, unlike in today’s welfare statist system.
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