Understanding the US Healthcare Market

The healthcare market, like all markets, comprises different players that can be categorized as buyers and sellers. Our series, “Understanding the US Healthcare Market,” describes the roles, incentives and financial experience of each of the players in the healthcare market.

  1. Employers and Other Purchasers
  2. Health Plans
  3. Hospitals and Physicians
  4. Drug Companies and Pharmacy Benefits Mangers

How services are bought and sold determines the relationship between quality and price.  This is true of all markets, although the healthcare market can be particularly complex because of the many players with often misaligned incentives. Sometimes these players work together in a single structure and other times each player works relatively independently.  In either case, purchasers and consumers do not always see how these players relate in the overall marketplace nor is it easy to determine either price or quality.

“Understanding the US Healthcare Market” offers foundational knowledge about the healthcare market to purchasers who want to make fundamental changes to the market in order to purchase more health, not more healthcare.