The UK healthcare system is 96% or so publicly funded. Yet I choose my private GP. If they don't treat me well, I go somewhere else. So while they can't compete for me by price, they need to be efficient enough to be able to afford to provide care their patients are happy with, or they loose their patients, and with it their funding.
They also need to keep their cost under control, as their cost determines their profitability: The rate they get paid to take NHS patients is set across the board.
And if/when the NHS sees the cost of providing certain care drops across the board, they can and do push the price they are willing to pay for it down.
The UK incidentally has a healthcare system that is substantially cheaper than the US, yet ranked substantially higher by the WHO.
I spent 5 weeks in hospital last year for Pulmonary Edema (fluid on the lungs) related to diabetic-induced heart problems. Two ops and 5 stents later I can't fault the UK NHS model. It's not perfect, but it does a great job without bankrupting the patient.
Think of car insurance, which is mandatory (agree some people still ignore it) yet is super competitive. And they don't compete on price. They just differentiate in the market around price and services.
To get more customers from 'the other guy?' If they all cost the same, then no one will switch, but if Insurance Company A is cheaper, then maybe someone will switch from Insurance Company B.
[ I'm assuming that you mean 'insurance providers' and not 'medical care providers.' ]
Odd how three people all responded to me with the interpretation that I was being a moron rather than the interpretation that I was asking a tough question.
> If everyone has insurance, what makes providers compete on price?
Strictly speaking, they don't.
But they have a strong incentive to limit costs because of insurance company reimbursement policies and the conditions for getting "in network" for HMO-style plans.
I don't understand, they compete like any other business? The same for less money or a better product for the same (or more) money (a poor product for even less money, of course, is not an option).
Providers, dammit, not insurers. Makes sense now. Sorry.
Good question, I don't actually know. Surely the insurers will make them compete, but that should also happen in the US, and obviously not fixing the problem.
They also need to keep their cost under control, as their cost determines their profitability: The rate they get paid to take NHS patients is set across the board.
And if/when the NHS sees the cost of providing certain care drops across the board, they can and do push the price they are willing to pay for it down.
The UK incidentally has a healthcare system that is substantially cheaper than the US, yet ranked substantially higher by the WHO.