One of the biggest applications of methods of market design that the world has yet to see in its full glory is the area of healthcare provision. It is dying to happen, it needs to happen, and it must be done by those who understand market design.
In these pages I will give different contexts where competition is used to improve outcomes of healthcare procurement and delivery. I will also talk about the efforts that have been made to introduce formal market design methods in different countries and in different areas of healthcare.
I will start with the US market where the Center for Medicare and Medicaid Services (CMS) has introduced competitive bidding for procurement of durable medical equipment.
A second area where CMS has introduced competitive bidding is in its Medicare Advantage program where private insurers submit bids to qualify and fix rates for providing Medicare insurance services to beneficiaries.
I will also talk about use of competition in healthcare systems in UK, mainland China, Taiwan, and hopefully other systems over time.