Sunday, May 17, 2009

Profit Keeps Health Care Healthy

Profit benefits all whereas deficits and losses punish many. Health care is no exception as Richard Durana's healthy study on the value of profit in health care demonstrates. Entrusting health services to government management or subsidy is a recipe for for deficits and waste. It inevitably leads to regulatory harassment of providers and to the rationing of care. Richard Durana's case for more market in this crucial sector of society is based on solid economic analysis. Beyond economics, there is also a moral case to be made for profits that reward professionals and industries that work towards the common good. Wealth gives them incentives and resources needed to pursue their battle against human suffering and disease. Government regulation and rationing does just the opposite.


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