ABSTRACT

The foundation of any health care system is the individuals and organizations that deliver care, collectively termed "providers." The theoretical appeal of competitive markets for determining resource allocation, including provider supply, there are a number of well-known market failures that China must consider as it reforms its policies to manage health care provider supply. England has seen dramatic change in the number of providers. The chapter provides an overview of challenges in managing the market for health care provider supply from the private market perspective and the government regulatory perspective. It also provides an international comparison of provider supply metrics. The chapter describes overview of key international practices and examples from two distinct approaches to managing provider supply: a market driven approach with government intervention and a government driven health planning approach. The market failures discussed above are all exacerbated by insurance. Just as markets may fail, government regulations may fail to generate efficient outcomes.