ABSTRACT
This chapter looks at the different dimensions in which competition takes place in the health care market. It starts by looking at price competition in terms of the payment systems stemming from the negotiations between payers and providers and their efficiency consequences. Next, the focus moves to quality competition. First we analyze the impact of financial incentives on the (re)classification of patients; next we study the effect of the market structure on the competition among providers to attract patients. The chapter ends with an appraisal of technology adoption as a major driver of the growth of health care costs.
