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.
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Hilton Head Island