Regulating the health industry (Revised)

This 2-volume report examines the failure of government intervention in the health industry to alleviate rising costs and consumer dissatisfaction with access to and availability of quality health care. A detailed analysis of causes and opportunities for public intervention into the health care industry are presented, and a framework for analysis of health policies is provided. Market characteristics of the industry are presented, and goals of health policy reviewed. The theory of public policy is discussed. Another section examines certificate of need and franchising, regulation of rates and modifications to current reimbursement schemes, uses of licensure and certification, the potential role of subsidies as policy instruments for rationalizing the health industry, and proposals designed to improve the ability of the consumer to more actively participate in the medical care decision process through public information systems. Effects of public utility regulations in general are described, and comparisons and conclusions drawn concerning regulatory failure. The second volume contains appendixes with sections on consumer surplus benefits, analytic models of price regulation, rate review and regulation in specific States, and an annotated bibliography.