Competition Drives Change

Competition is crucial in driving change, in any industry, and healthcare is no different. A competitive environment drives innovation, efficiency, higher quality and lower cost. Industry incumbents have argued against competition countless times over the course of our country’s economic history, and in every instance, the forces of the free market have driven positive change, which benefits the consumer. Just as the American auto industry needed competition from Japanese automakers in order to improve, healthcare needs competition in order to increase the standards of quality, improve patient experience, and lower cost.
 
New Hampshire has recently become a microcosm of what’s happening to healthcare nationwide, with Cancer Treatment Centers of America (CTCA) lobbying to secure and build a hospital in the Northeast. However, the State’s Certificate of Need (CON) acts as a barrier against competition, by requiring the state to determine if there is need for an additional hospital to enter the marketplace. CTCA is fighting to overcome this barrier.
 
Nationwide, incumbent hospitals are urging lawmakers to restrict competition, and block new market entrants. But why? If a new entrant claims to offer a better value, then let them enter the marketplace and compete. Consumers will ultimately benefit from the positive change that results, even if the market players are forced to change. Quality, efficiency, value, innovation and customer satisfaction are all enhanced in a competitive environment.