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In other sectors, competition improves quality and efficiency, spurs innovation, and drives down costs. Yet providers and payers continue to try to stymie competition.Many are actively pursuing consolidation, buying up market share and increasing their bargaining power.The economics of the consolidation are supported by the Accountable Care Act, which rewards scale over competition.Benefits are standardized, premiums are de facto price-controlled and margins have compressed to commodity levels.The healthcare industry is becoming an oligopoly, which could portend bad news for consumers.An oligopoly is an industry structure in which market power is shared among a few large producers.Encouraging enterprise to leverage the investment they currently have in Service Now technology for IT into other parts of the business is not only smart, but “critical for success,” according to Cullity.

health care system is inefficient, unreliable, and crushingly expensive.Health care payers and providers must stop fighting the emergence of a competitive health care marketplace and make competing on value central to their strategy.All stakeholders in the health care industry can catalyze change in five ways: Put patients at the center of care, create choice, stop rewarding volume, standardize value-based methods of payment, and make data on outcomes transparent. Despite the hard work of dedicated providers, our health care system remains chaotic, unreliable, inefficient, and crushingly expensive.Moreover, what happens in health care markets matters for the success of the Affordable Care Act (ACA) specifically, and for all health reform generally.Markets are the chassis upon which the health care system runs — and if the chassis is broken, the car won’t run, no matter how elegant or well designed the reforms designed to act upon it.




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