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10 - Licensing of Health Care Professionals

from Part II - Seller Cartels

Published online by Cambridge University Press:  24 November 2022

Roger D. Blair
Affiliation:
University of Florida
Christine Piette Durrance
Affiliation:
University of Wisconsin
Tirza J. Angerhofer
Affiliation:
Duke University, North Carolina
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Summary

Health care professions are regulated by state licensing boards, which are charged with promoting public health, safety, and welfare by preventing charlatans, incompetents, and quacks from practicing. Typically, these boards are populated by members of the profession being regulated since they have the requisite expertise to police the profession. However, professionals with the power to grant licenses may have a financial incentive to use that power to reduce competition and exclude other medical professionals. Reduced competition leads to higher prices and reduced access to health care. Concerned about this conflict of interest, the Supreme Court in North Carolina Dental agreed that the state should supervise such boards through the state action doctrine. In this chapter, we explore the competitive concerns economists and the antitrust Agencies have regarding professional licensure regulations. We identify two general antitrust concerns: (1) the exclusion of some competitors through entry limitations or practice restrictions and (2) supervision requirements that make the employment of competitors less attractive.

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Publisher: Cambridge University Press
Print publication year: 2022

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