Ten Year Sunset Rule for Healthcare Regulation Is a Nonstarter and Discouragement to Post-COVID-19 Investment

Authors

  • Regina Herzlinger Regina Herzlinger, McPherson Professor, Harvard Business School, Harvard University
  • Eugene Schneller Eugene Schneller, Dean’s Council of 100 Distinguished Scholar, W.P. Carey School, Arizona State University

Abstract

FROM THE PUBLISHER: It was my pleasure to interview the authors about this important subject matter.  See the interview transcript 

U.S. healthcare delivery has not benefitted from the same productivity growth as many other service industries, such as bricks and mortar retailing, a loss that has gravely diminished cost control and access. Regulatory capture, which creates barriers to venture capital (VC) investment, has curtailed VC investment in the new entrants that can increase productivity. The important delivery innovations that occurred during the COVID-19 pandemic demonstrate what can happen with concurrent review of regulations. The new Health and Human Services’ ten-year period for review of regulations, which is longer than the VCs’ 5-6-year investment cycle, will deter their investment by permitting potentially obstructive regulations to remain in place.

Author Biographies

  • Regina Herzlinger, Regina Herzlinger, McPherson Professor, Harvard Business School, Harvard University
    Regina Herzlinger, McPherson Professor, Harvard Business School, Harvard University
  • Eugene Schneller, Eugene Schneller, Dean’s Council of 100 Distinguished Scholar, W.P. Carey School, Arizona State University
    Eugene Schneller, Dean’s Council of 100 Distinguished Scholar, W.P. Carey School, Arizona State University

References

Please see the article for references and footnotes.

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Published

2021-04-01

Issue

Vol. 47, No. 4, Spring 2021

Section

Articles