Competition good for our economy, us

newsroom@islandpacket.comMay 2, 2014 

I'm confused by a recent editorial about DHEC's Certification of Need Program and how, in theory, governmental involvement holds down health care costs by stifling competition.

What I learned in Economics 101, was that competition lowers prices and/or increases service levels for consumers. What I learned during a 35-year business career was the reality that competition made you work harder and smarter if you wanted your business to survive. I also learned about barriers to entry. A barrier to entry can be technological, capital intensive or any number of things. When you get government to create a barrier to entry based on theory and not reality, you've got it made. No competition, no need to control costs or provide quality service; the government has picked your winner. Hope you enjoy and have a nice day.

Gov. Nikki Haley, according to the editorial, fought DHEC because, as a legislator, she wanted to increase competition in the hospital arena. It seems she has stayed true to her beliefs. I wish the governor well in getting this legislation passed so that our state enjoys the advantage of healthy competition. It will be good for our overall health.

Bob Cherichella

Hilton Head Island

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