V2I10P56

Government Intervention as a Response to Market Failures in Healthcare

Dr. C Mannemanna^1*

Abstract

Markets in healthcare often do not work efficiently and equitably because of structural and informational imperfections. Problems like asymmetrical information, exogenesis, monopoly power and inequality result in long-continued market failures. This article investigates these failures and questions government responses, including regulation, public services, support (with caveats) and information outreach. We look at health care costs and results around the world. Our evidence suggests well-designed government intervention, which marries fairness, efficiency and innovation, can be very effective at improving health care delivery and solving social inequalities.

Keywords:

Healthcare; Market failure; Government intervention; Policy; Equity; Public health