The Alberta proposal raises three issues. First, do for-profit hospitals perform better than non-profit ones? Second, do private hospitals (either for-profit or non-profit) perform better than government-run (public) ones? Third, does intensified competition among hospitals enhance or reduce medical care? Each of these issues has been extensively studied by economists and health policy analysts.In a forthcoming bill (February 2000), the Alberta government has proposed permitting the provision of surgical services by private hospitals. Will this proposal improve health care delivery? A thorough review of the medical economics literature indicates that it will.

The Alberta proposal raises three issues. First, do for-profit hospitals perform better than non-profit ones? Second, do private hospitals (either for-profit or non-profit) perform better than government-run (public) ones? Third, does intensified competition among hospitals enhance or reduce medical care? Each of these issues has been extensively studied by economists and health policy analysts.