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Competition and regulation in the healthcare sector

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  • OECD

Abstract

Competition can control costs and incentivise efficiency in the healthcare sector. This paper examines how regulation interacts with competition in healthcare markets and identifies areas where competition authorities can advocate for pro-competitive regulation. It presents a framework for identifying and reviewing regulatory barriers to competition, and it discusses empirical evidence and relevant experience by competition authorities. It finds that rules such as needs based entry restrictions, or incumbents’ involvement in licensing decisions, can limit entry and reduce capacity. Similar concerns arise in professional regulation, where restrictive definitions of tasks and limited portability of licences can exacerbate workforce shortages and reduce access. The development of digital services can also be slowed down by regulatory barriers, such as the lack of interoperability between electronic records systems. Finally, pro-competitive regulation can support patients and payers by providing them with usable information.

Suggested Citation

  • Oecd, 2026. "Competition and regulation in the healthcare sector," OECD Roundtables on Competition Policy Papers 334, OECD Publishing.
    • Handle: RePEc:oec:dafaac:334-en
    DOI: 10.1787/102fea92-en
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    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L8 - Industrial Organization - - Industry Studies: Services
    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations

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