Applying the free market philosophy to healthcare

Abstract

Purpose

The purpose of this paper is to support the claim that socialism is ineffective and inefficient, and that this insight applies to socialized medicine, as well as all other forms of socialism.

Design/methodology/approach

The main method utilized in this paper is the application of basic supply and demand analysis, based on private property rights and profit considerations, to healthcare.

Findings

It is found that the application of these basic elements of economics to healthcare demonstrates that free enterprise can better attain the ends of healthcare than can socialism.

Research limitations/implications

Future research should focus on the anomaly that most people view socialism with great disdain, but not when it comes to health care. Why the logical disconnect?

Practical implications

The Soviet Union went through economic paroxysms in ridding itself of socialism. If the implications of this research are implemented, these can be avoided in our health care system.

Social implications

The impact on society of this research will be very beneficial; under free enterprise, costs will be lower, and quality of care higher. But public attitudes are at present very much in favor of socialized medicine. Hopefully, one of the benefits of the present paper will be to change this.

Originality/value

The value of the paper is that, in some small way, it will help attain greater health for the entire population.

Citation

Testa, P. and Block, W.E. (2013), "Applying the free market philosophy to healthcare", Humanomics, Vol. 29 No. 2, pp. 105-114. https://doi.org/10.1108/08288661311319175