Major purchasing decisions in the U.S. health-care system traditionally have been made by “wholesale” buyers--private employers and government health program administrators. Individual consumers remained largely passive participants in their own health-care arrangements. Recent developments in the health-care industry, however, suggest early signs of an evolution from this wholesale model to a more competitive, innovative retail marketplace. Illustrative examples include lower-cost walk-in health clinics, personalized concierge health care, consumer-directed health plans, more transparent information on the cost and quality of health services, remote monitoring of patients’ health conditions, care delivery by nonphysician professionals, and financial-planning tools to help manage longer-term health needs.

At this AEI Health Policy Discussion, health-care business strategist Gary Ahlquist will outline how a robust consumer-oriented market may be rising from the ashes of the current system. Paul A. London, author of The Competition Solution (AEI Press, 2005), will argue that the health-care industry should follow the examples of other business sectors that were successfully transformed in recent decades through increased competition and innovation. Jay Silverstein, president of Revolution Health’s Employer/Employee Group, will describe a variety of services offered by his new company that offer individuals more convenience and control over their health-care decisions. Mark D. Smith, M.D., president of the California HealthCare Foundation, will suggest how unpacking the conventional bundle of health insurance benefits into several of their component parts might provide better access to affordable health care for lower-income consumers.