The price system is the most efficient way to allocate goods and services in the economy because of its impersonal nature - a bureaucracy is not needed to decide who gets what and how much of a good or service.
In the health care sector, however, society has an aversion to allocating services based on price alone. More than 65% of health care expenditures are paid by insurance, which insulates individual from the effects of many health care prices.
Some non-price criteria, such as patient's health status and age in the case of heart transplants, are used as rationing devices instead. - Competition, Regulation, and Rationing in Health Care
Price system is a means of organizing economic activity. It does this primarily by coordinating the decisions of consumers, producers, and owners of productive resources. Millions of economic agents who have no direct communication with each other are led by the price system to supply each other’s wants.
In a modern economy, the price system enables a consumer to buy a product he has never previously purchased, produced by a firm of whose existence he is unaware, which is operating with funds partially obtained from his own savings.
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