Competition Quote by Michael E. Porter
““The failure of competition is evident in the large and inexplicable differences in cost and quality for the same type of care across providers and across geographic areas. Competition does not reward the best providers, nor do weaker providers go out of business. Technological innovation diffuses slowly and does not drive value improvement the way it should; instead, it is seen by some as part of the problem. Taken together, these outcomes are inconceivable in a well-functioning market. They are intolerable in health care, with life and quality of life at stake. They are unsustainable in a sector that consumes a large and growing portion of the national budget.””
About This Quote
Source Speech: Health Care Competition Forum, 2010
The quote argues that competition in health care fails to lower costs or improve quality, leading to wasteful spending and poor outcomes.
In simple terms: Competition isn’t fixing health care costs or quality.
Key Takeaway
Rethink incentives beyond competition.
Themes
health economics
market failure
quality
cost
innovation
Mood
critical
concerned
Type
analytical
policy-oriented
When to use this quote
- hospital administration
- policy making
- insurance design
- patient advocacy
- government budgeting
Key Concepts
public policy
incentive design
provider behavior
Questions to Reflect On
- How can we align incentives for better outcomes?
- What alternatives to competition could reduce waste?
A Different Perspective
Competition may improve some services but can ignore equity and coordination challenges.
