ABSTRACT
This chapter considers two related facets of the health care market: the overall scope of regulation; and a separate discussion about a major issue in health care policy and regulation, the management of technical change. It deals with various price-, quantity-, and quality-affecting regulations and also deals with the drug and device sectors of the economy as a special and important case. Debates about licensure continue to carry the flavor that arises from this historical background. Most areas of medical care that have licensure requirements also have voluntary indicators of quality. Voluntary quality certification has some distinct advantages over mandatory licensure. The federal government's centers for Medicare and Medicaid Services (CMS) has introduced a new set of quality measures for ambulatory care that—for the first time—assess quality issues in the doctor's office setting in ways that go beyond simple process measures.
