Deregulation and Regulatory Backlash in Health Care Harvard Case Solution & Analysis

The American health care system is undergoing market and organizational changes similar deregulation of transportation, communications, utilities, and financial industries, price competition is changing the speed control, new entrants displacing organizational staff, innovation affect the stability and displacement of individual choice of government oversight. These turbulent changes create uncertainty, hostility and negative reaction to the re-regulation. This article compares the evolution of the health sector with that of other non-regulated industries, highlighting the four effects that cover all sectors. Deregulation and the role of price competition has led everywhere cost reduction through better capacity utilization and improved productivity, increased differentiation of prices and products, moving away from one-size-fits-all model is characterized by regulated industries, the dynamic changes in the market and organizational structures, which led to the consolidation of several products that are geographically diversified firms.;, and political reaction caused by uncertainty, organized producer groups and individual groups of consumers who do not benefit from the total cost and improve the product "Hide
by James C. Robinson Source: California Management Review 22 pages. Publication Date: 01 Oct 2000. Prod. #: CMR184-PDF-ENG

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