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So you are saying then that healthcare is a non-competitive market, the number of doctors, facilities does not effect price....unless you reduce supply....then price will reduce.
Oh no.. its a competitive market.. in many ways very competitive. the number of doctors and facilities do effect price. The more supply.. generally the higher the price.
that's because prices are set by two factors... what a cost of a service is..and what people are willing to pay for that service.
Well.. when you have a lot of physician practices... each with a lot of overhead, insurance, nurses, building, x ray machine, x ray tech. That adds up to a lot of cost..and each practice has to get enough to cover that cost plus some profit.
So that increase in supply adds to the baseline cost to provide those services and thus increases the price.