Health Care Economics

Health care economics is in a state of turmoil, as a result of dynamic changes occurring in the health services environment. The contemporary health services sector is comprised of a wide variety of health care providers (Markey, & Shafran, 1986). Health maintenance organizations (HMOs), independent health care professional practitioners (both physician and non physician), behavioral medicine clinics, nursing homes, and general acute care hospitals are among the major components of the health services sector (Markey, & Shafran, 1986). A major and growing source of change for health care economics is the presence of corporate health care providers as major players in the health services sector (Markey, & Shafran, 1986).

There are significant problems associated with the growth of the forprofit segment of the health services sector. One of the potential problems often cited with respect to the growing role of forprofit health services organizations is the tendency for such institutions to target only the most lucrative health care business. When forprofit health services organizations are successful in this type of marketing effort, the nonprofit health services organization is saddled with the responsibility for providing health care to those individuals

1 2in society who are least able to fund their own care. The fact that a large proportion of these individuals are not covered by health care insurance, together with the increasing reluctance on the

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ch industry. Thus, it is more appropriate to say that the objective of deregulation is to permit, to the extent possible, free market conditions to prevail. Actually, there is no real disagreement between the supporters and opponents of a prohibition of some economic arrangements between physicians and physical therapists with respect to market freedom, although the opponents of such a prohibition attempt to make one believe that such a disagreement exists. Rather, the disagreement is over what constitutes a restriction on market freedom. Opponents of the proposal contend that any restriction on economic arrangements between physicians and physical therapists also restricts market freedom. Supporters, however, contend that the economic arrangements themselves, between some physicians and some physical therapists, act as a restraint on trade, and result in unfair competitive practices. Thus, supporters of a proposal to either prohibit or regulate economic relationships between physicians and physical therapists tend to view such relationships within the context of antitrust. A trust, in its most simple form, and in the context of economic control, is a combination of enterprises in which control is exercised by a c

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