Introduction: Regulation plays a huge role in the healthcare industry. The health care industry limits health care costs by imposing price controls and ignores the long history of failures in this process. Regulated prices prevent markets from allocating resources efficiently, relying on inevitable deficiencies and poor quality, while promoting improvement and diverting attention from inequitable black markets. Internationally, Japan's strict price controls account for many of these failures, while the Netherlands has taken advantage of advances in cost and quality by abandoning them in favor of pricing based on on the market. Government-set prices for Maryland hospitals and under Medicare have only served to increase costs and provider power. Now, as Obamacare increases taxpayers' obligations to fund health care, there is every reason to believe that efforts to regulate provider prices will likely prove costly and counterproductive. Changes Needed: The United States spends far more on health care than any other country. Additionally, the government funds about half of health care spending, prompting some to advocate that price regulation could exploit the cost of care and help ensure a better deal for employers, taxpayers and individuals purchasing health care. health coverage. However, price controls have always been widespread, stable and dull. Strict price controls lead to unused resources and interrupted production. Widespread hunger keeps providers in constant demand for substandard services and prevents them from benefiting from innovation or quality improvement. Sanctioned prices reduce providers' incentive to reduce costs and encourage them to seek profits by playing politics rather than serving their customers. Whereas... middle of document... In general, price regulation is most effective in a market with many natural barriers to competition, a few homogeneous products, few suppliers to monitor, and a single measurable objective. Such circumstances could not be more different from those prevailing in the healthcare sector. Negatives of price regulation: Price regulation causes scarcity, lower quality, less improvement, overpayments and causes price debates and black markets. Furthermore, it hinders those most in need and true reform. Burden of Price Control: To some, price regulation appears to offer the vision of a free lunch by curbing the monopolistic power of health care providers. For others, it provides a practical way to reduce the expected budgetary cost of social spending. A third motivation seems to be the desire to redistribute resources to patients deemed most in need...