Market Model Patterns of Change with oligopoly Healthcare insurances

Market Model Patterns of Change with oligopoly Healthcare insurances

The direction and development of health care reforms in United States provide other things being equal, development and implementation of health strategies undertaken by state and local authorities. Modern economic relations in health care are characterized by the desires of obtaining health facilities (HCF), a kind of legal and economic independence and, at the same time - urgent needs to strengthen partnerships. The main structural constituents of the health care system are not isolated health care facilities or health care industry itself, and strategic alliances, which are territorial groupings health facilities and related organizations operating in a particular area and characterized by common activities, and complementary to each other. On the one hand, the classic strategic alliance as one of the many forms of organization must be distinguished from an oligopoly, and the other - well correlated with the real possibility of its occurrence in the current model of health care system. Being a fairly common form of the market, an oligopoly in the production and delivery of health services has the following characteristics:

A small number of competitors with significant barriers to entry of new health facilities;

Provided medical care within the economic characteristics (medical service) can be standardized and differentiated;

Effectiveness of health care requires that the production capacity of each medical facility held a large share of the total market for medical services. In connection with this - quite a high degree of concentration of medical institutions within the region in which the combined share of four to eight medical institutions I-II category of not less than 60% of the total demand for medical services

Profitable expansion of the material-technical base of health-care setting to larger sizes due to the weakness or absence of the field attractive and reasonable competition;

Absolute vertical interdependence of health - care institutions, effective mechanisms for neutralizing competitiveness;

Mainly non-price competition in the production and consumption of medical services in the form of municipal health-care delivery.

Every major health care setting (a company that produces medical services) under conditions of oligopoly is trying to behave as a monopoly, whose work, however, limited the power of competition. Under perfect competition, because the success of the oligopolists is possible due to the weakening position of competing companies, the conflicts in such a market sometimes lead to fierce competition.

In practice, often the opposite occurs. Health facilities at the level of the superior or co-coordinating body of health tend to reach an agreement (cartel) over the division of medical services market (directive is binding for each service area health care facilities, and inside areas - securing a certain number of troops serving in a particular medical office). Plans approved by the state guarantees the provision of free medical care. Coordinated and approved by the appropriate fees the cost of medical services, etc. As a result, the set of MPI-oligopolists actually acts as a pure monopoly, but formally they are subject ...