Thursday, 14 December 2017

When Free Market is Not Good Enough

I am a supporter of free market and unrestricted competition. It delivers high quality products at low prices. However, there are areas, especially in the service sector, where, a strong regulator is required to ensure a fair deal to the customer. Anyone, who has had a child suffer in school, a dear one in a hospital or has been at the receiving end of an indifferent mobile phone service provider will agree with me. 

SCHOOL:

Once your child gets into that famous school, you cede all your rights to the school management. Whether the child is molested, bullied, taunted, becomes a drug addict or even murdered, the parent has no say whatsoever. Schools are managed by powerful trusts often run by politicians, big business or by ultra-sensitive missionaries. They are not answerable to anyone. The police often sides with them and your grievances are scorned even by other parents until it is their turn to suffer. You have to put up with incompetent teachers, humiliation of your child at their hands and pay up arbitrary fees and charges. Free competition in the market does not help since you just can't take your child to another school. Even if you could, there would be no guarantee that the other school would be any better.

HOSPITALS:

Arguments that hospitals are doing a noble business and that medicare is naturally expensive are hurled at you when you question their extortionist ways. Nobody, except the government, opens a hospital for charity. A hospital is a business just like a superstore or multiplex. Unfortunately, once a dear one of yours is admitted to a hospital and is tethered to life-support, you can't just shop around for a better or cheaper medicare service. Horror stories of extortion, insensitivity and incompetence apart, a hospital is a service provider that keeps you completely in the dark about the treatment of a patient. As to why eight hundred pairs of gloves were used on a non-surgery patient in just seven days, or how a bill of one lakh Rupees is added up for a four-hour intervention on a dengue patient are never explained. You pay up without question, or they wouldn't release the dead body.

The Medical Council of India is a closed society and a private club. There has seldom been any case of an incompetent or a callous doctor being delicensed in India. When the media or an aggrieved person questions the dubious ways of hospitals, arguments like "to err is human", "hospitals are not doing a charity" and surprisingly and simultaneously, "hospitals and doctors are doing a noble job" fly thick and fast.

If a person wants to withdraw his ailing relative and demands a discharge, all life support is immediately disconnected from the patient. The process of discharge starts after this, which may take half a day or more. Meanwhile, the patient goes into further distress. Such practices amount to blackmail and no free market can address this criminality. Only a tough regulator and quick legal action can discipline the recalcitrant in the long run.

The Delhi Govenment has ordered shutdown of a corporate hospital in a first of its kind action. Statements such as this step will lead to a shortage of hospital beds in the Capital and will raise health care costs are made with impunity. Sorry folks, we will bear with a temporary shortage. And, why should there be an increase in costs? Aren't hospitals doing a noble job and would, therefore, refrain from cashing in on this "opportunity"?

CARS (Or other expensive hardware):

Once you buy a car, you have no option, but to bear with the "authorised service centre" for years of poor service, unnecessary tinkering and even fleecing. Behind those swanky showrooms, hide the real face of free-market business, which treats you as a source of never-ending revenue.

REGULATION, CONSUMER PROTECTION AND LEGAL REDRESS:


A child or a patient is not a mobile phone number that can be "ported" to another service provider. On the contrary, even easy portability has failed to discipline indifferent mobile phone service providers in spite of a fiercely competitive market. Consumer courts have become regular legal arena, where complaints can remain unredressed for years through tiers of appellate courts. Intervention to help a sufferer may be needed in a matter of hours. Do we have a mechanism that can deliver that?

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