Paralyzed by Prices: An Analysis of Price Theory within the Context of Health Care

This article examines the structure of pricing within health care. The price mechanism within health care does not function as it does in other sectors of the economy. The author examines the price theories of capitalism, socialism, and solidarism to illuminate the purpose of prices relevant to health care. Drawing points from each system, the author argues in favor of a solidarist approach to prices relying on principles set forth in Catholic social teaching, with the caveat that the capitalist natural price must first be determined. The unique features of healthcare pricing and prioritization indicate that moral principles must guide the economics of health care, not merely supply and demand. This article discusses the problems with creating useful prices in health care. It examines the price theories of capitalism, socialism, and solidarism to see which would be most useful for health care price formation.