Competition and Monopoly in Healthcare Sector

In the healthcare sector, competition occurs when multiple providers, like hospitals or clinics, offer similar services, leading to better quality and lower prices for patients. For instance, if several hospitals are available, they may compete to attract patients. In contrast, a monopoly happens when a single provider dominates the market, resulting in limited choices and potentially higher costs. For example, if only one hospital serves a region, it may set higher prices without pressure from competitors. Striking a balance between competition and regulation is crucial for ensuring accessible, high-quality healthcare for everyone.