Most health economists view the role of regulation in healthcare industry negatively, pointing to the fact that in the past all attempts to control costs through regulation has been largely unsuccessful.

Question

Quizplus · Accepted Answer

Even though the 2^nd part of the statement is true, regulation of the healthcare industry involves much more than just cost control. In fact, the book explicitly states that healthcare sectors in most countries cannot function without regulation. In an industry where most costs are shared, there is always potential for abuse of the system, thus there is a need for a controlled environment.

Most Health Economists View the Role of Regulation in Healthcare