Impact of Market Competition Forces on Health and Medicare Care Outcomes

Market Competition on Healthcare Outcomes
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Institution
Market Competition on Healthcare Outcomes
Measure of performance outcomes in healthcare and Medicare is important because it sheds light on the role that market competition plays in the healthcare sector, and how it affects efficiency and patient satisfaction. A healthy competition between healthcare providers ensures that they offer the best health care services to patients, hence increasing their satisfaction.The objectives of this brief is to determine the effect of market competition in the healthcare industry on the cost-benefits, quality of care given and the satisfaction of patients.
Key Elements
Presence of competition between healthcare providers increase the quality of health care sevices provided to patients as revealed by Gaynor, Serra-Moreno, and Proper (2013), after examining the impact of a pro-competition policy on hospital outcomes in England. They reveal that the policy has no impact on the operating expenditures of the healthcare industry. However, the study reveals that there is a significant fall on the rate of mortality as the life expectancy of patient under Medicare increases by an average of nine years for males and eleven years for females. This indicates an improvement of the quality of care given, which supports one of the objectives of this brief, revealing that market competition has a positive effect on the quality of healthcare services,
The demand for healthcare services affects the allocation of resources to patients in the U.S., as revealed by (Chandra, Finkelstein, & Syverson, 2016). The performance of hospitals is better among hospitals that have a higher market share. It is therefore clear that market competition increases the quaity of healthcare , hence the performance of the health care sector. A higher market share is an indication of patient satisfaction on services provided because patients will tend to...