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Deregulate Healthcare

Posted at 09:57 AM on May 25, 2009

RHJ Medical, Inc., is a rehab company for heroin addicts that wants a federal judge to overturn the will of the people in Dubois so they can open their clinic there (500 feet away from a public park.) We have heard the tune to this song before, have we not?

It is an unfortunate reality of our times that we do need these rehabilitation clinics, and we need a lot of them. But understandably, no one wants them in his back yard. It seems like an irreconcilable problem, but it is not.

 

In order to understand almost any societal problem, you have to follow the money. There is big money to be made in these rehabilitation facilities.

 

However, why do we need separate physical facilities to provide these necessary treatments? One problem is that this business is highly regulated, which makes it difficult for other healthcare providers to enter the business.

 

One solution is to deregulate the industry to provide more competition, and therefore less expensive treatment options, so that perhaps the taxpayer is not footing 100% of the bill all the time. As regulations increase, so does the cost. Reducing these regulations makes it easier for new players to enter the market, thereby reducing prices through competition. (Remember competition? That’s something we had before socialism.)

 

Another solution is to allow other healthcare providers to provide rehabilitation services. (Notice I did not say force them to provide services.) Another would be for hospitals to rent or lease space in their facilities for these services to be rendered.

 

You have heard of Home Nursing care? What about Home Rehab care?

 

Free markets have ways of solving problems that you and I cannot even imagine in our ivory tower think tanks. Deregulate the delivery of services, and the market will provide the answers.

 

Lois Kaneshiki

Blair Township, PA

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