The report highlights that a well-functioning healthcare market requires manufacturers to produce high-quality products, distributors to deliver the necessary quantities, and providers to administer them correctly. A single breakdown in this complex system can keep life-saving products out of the hands of people who most need them.
The Market Shaping Primer identifies three key root causes of market failure: high-transaction costs, poor market information, and risk imbalances between supply and demand. It sets out a range of market shaping tools, including price ceiling guarantees.
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