Market Equilibrium and Competition in Health Care Markets

Market equilibrium in health care refers to the point where the supply of medical services meets the demand for them, balancing the quantity of services provided with what patients want. In competitive health care markets, multiple providers offer similar services, which typically leads to better quality and lower prices, as they strive to attract patients. However, health care markets often face challenges like unequal information, varying provider quality, and regulations, which can disrupt this balance and limit true competition. Understanding these dynamics helps ensure that patients receive effective, affordable care.