The Seen and the Unseen - hosted by Amit Varma cover image

Ep 393: Amrita Agarwal Wants to Solve Healthcare

The Seen and the Unseen - hosted by Amit Varma

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Evolving Healthcare Delivery Models: State vs. Private Sector Dynamics

Healthcare delivery models are evolving beyond traditional state-centric approaches. The state can choose between two principal methods: directly delivering healthcare or facilitating private market delivery alongside funding. An emerging perspective suggests that equity in healthcare does not require the state to be the sole provider; instead, it may focus on optimizing funding and enabling private sector delivery while managing market failures through appropriate mechanisms. In prosperous societies, the state could limit its role to regulating public goods such as clean air and sanitation, distancing itself from both delivery and financing. Various examples, such as Thailand, illustrate a mixed model where the government finances and delivers based on outcomes, encouraging accountability through measurable performance. Other countries, like Germany and France, illustrate further variations where government financing coexists with private delivery, utilizing not-for-profit sickness funds structured around competitive service standards. This diversity underscores the need for adaptable systems that balance government roles with private sector involvement while ensuring the effective alignment of incentives and outcomes, recognizing that no single model guarantees optimal results universally.

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