It Is Time to Consider More Price Regulation in Health Care – Amitabh Chandra and Sherry Glied/JAMA
“Price setting” by a government agency buying services for the public falls within the broader category of “negotiation,” which can analyzed with “interactive behavior” or “game theory” models. In the case of medical services, “bargaining” (involving strategic threats and promises) extends into the political arena. The success of US hospital, medical professional, Big Pharma and medical technology lobbies to influence Congress and federal agencies raises the question of whether price regulation can stabilize, and perhaps lower, health care costs to the degree that other countries have. But what choice does the US have? Large employer coalitions, insurance companies, and other private sector entities for decades have failed to bargain effectively on behalf patients, workers, and taxpayers funding the ultra-expensive US medical industrial complex.