Deregulation and Regulatory Backlash in Health Care Case Solution
Concerns the marketplace and organizational transformation similar to the deregulation of the transport, communication, utility, and finance sectors, with price competition replacing rate controls; new entrants displacing organizational incumbents; initiation disturbing equilibrium; and individual selection supplanting governmental supervision are being experienced by American healthcare system. These tumultuous changes are creating uncertainty and a backlash towards re-regulation. This article compares the experiences of other deregulated industries and the development of the health care sector, emphasizing four effects that cut across all sectors. Deregulation and the function of price competition has led unconditionally to prices that are undeniably cheaper thanks to efficient use of maximum capacity and improved productivity; increased distinction of prices and merchandises, moving away from the one-size-fits-all patterns characteristic of controlled businesses; dynamic changes in both marketplace and organizational structures, culminating in consolidation into multi-product, geographically diversified businesses; and political backlash, fueled by uncertainty, organized company groups, and selected groups of consumers who don't profit from the total cost and product developments.
This is just an excerpt. This case is about TECHNOLOGY & OPERATIONS
PUBLICATION DATE: October 01, 2000
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