Healthcare is heavily regulated, and I understand why some companies would be reluctant to branch out into it. But that doesn't mean the privacy and legal concerns surrounding HIPAA regulations are unwarranted. Yea, it would be nice if we lived in an ethical utopia where we wouldn't have to feel worried about people looking through our health records. But we don't. I would not feel comfortable with my health records…
It isn't just regulation, it is healthcare practically can't be entered in because of the established players and systems. Please read this http://www.washingtonmonthly.com/features/2010/1007.blake.ht... Guy made a company Retractable Technologies and made medical devices that prevented infections and saved lives. Hospitals won't buy it because of the system. Which happened partly due to regulation. This might also b…
If you actually read the article, it happened due to the absence of regulation. Hospitals formed an entity (the GPO) to bargain collectively for lower prices from suppliers. This is a classic example of collusion. The GPO started negotiating with the suppliers for a cut of the contracts that they entered into on behalf of the hospitals. This is a classic example of the principal-agent problem. As a result, Retractable Technologies' couldn't break into the market.
Collusion and principal-agent problems arise naturally in free markets. Indeed, the usual response to them is regulation. Antitrust enforcement would've prevented the hospitals from colluding with respect to purchasing supplies, and as the article points out, Medicare's anti-kickback provision, had it been applied to the GPO, would have reduced the principal-agent problem.