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Legislation and the American Dialysis Industry:

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  • Rudolph Daniels

Abstract

Monopoly power in the dialysis industry in the United States is linked to Public Lau’92‐603 (section 2991) of the Social Security Amendments of 1972 under which 90 percent of all patients with end‐stage renal disease became eligible for Medicare coverage In effect, Congress spawned a new government enterprise by removing the constraining factor of price to the consumer and legalizing government‐subsidized monopoltes in renal care which were empowered with the right to supply renal care services within designated areas without competition Those who suffer from renal insufficiency encounter monopoly on the supply side of the product (dialysis units) market, and the labor market (kidney specialists) since outside nephrologists are not permitted to treat patients‘assigned’ to “closed staff” units

Suggested Citation

  • Rudolph Daniels, 1991. "Legislation and the American Dialysis Industry:," American Journal of Economics and Sociology, Wiley Blackwell, vol. 50(2), pages 223-242, April.
    • Handle: RePEc:bla:ajecsc:v:50:y:1991:i:2:p:223-242
    DOI: 10.1111/j.1536-7150.1991.tb03330.x
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    References listed on IDEAS

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    1. Leffler, Keith B, 1978. "Physician Licensure: Competition and Monopoly in American Medicine," Journal of Law and Economics, University of Chicago Press, vol. 21(1), pages 165-186, April.
    2. Held, Philip J. & Pauly, Mark V., 1983. "Competition and efficiency in the end stage renal disease program," Journal of Health Economics, Elsevier, vol. 2(2), pages 95-118, August.
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