U.S. healthcare delivery has not benefitted from the same productivity growth as many other service industries, such as bricks and mortar retailing, a loss that has gravely diminished cost control and access. Regulatory capture, which creates barriers to venture capital (VC) investment, has curtailed VC investment in the new entrants that can increase productivity. The important delivery innovations that occurred during the COVID-19 pandemic demonstrate what can happen with concurrent review of regulations. The new Health and Human Services’ ten-year period for review of regulations, which is longer than the VCs’ 5-6-year investment cycle, will deter their investment by permitting potentially obstructive regulations to remain in place.
Read the full article in The Journal of Health Care Finance by Regina Herzlinger and Eugene Schneller