Monday, August 2, 2010

Market Shift

Are Americans really cutting back on health spending, as the Wall Street Journal suggests?

Professor Mark Perry argues that they're just spending their money more efficiently:
Consumers aren't necessarily consuming less health care like the WSJ suggests; rather, they are shifting their demand for health care away from expensive, conventional physician offices with limited hours to affordable and convenient retail clinics. Especially when consumers are spending their own out-of-pocket money for health care and they have a choice, they prefer market-driven, consumer-driven options like affordable, convenient retail clinics over conventional physician offices.
People can be rational actors when it comes to their health spending. We need the government to respect that fact, and protect our freedom to act in our medical self-interest.

(Via K.V.)