THE PRICE OF PAIN: MARKET FAILURES, MALPRACTICE, AND THE CRISIS OF TRUST IN HEALTHCARE

Healthcare is universally regarded as a critical sector, yet its ethical foundation has increasingly come under scrutiny due to the rise of commercialization, malpractice, and systemic inefficiencies. Information asymmetry between doctors, patients, and insurers creates opportunities for adverse selection, moral hazard, and supplier-induced demand, often leading to inflated costs and inequitable access. This paper reviews the theoretical underpinnings of healthcare market failures, highlights the consequences of asymmetric information, and discusses global case studies ranging from the U.S. Affordable Care Act and pharmaceutical pricing to Indias Ayushman Bharat scheme and the UKs NHS crisis. Emerging trends such as digital health, AI in diagnostics, telemedicine, and wearable technologies are analyzed for their role in reshaping patient empowerment and accountability. The paper concludes with policy recommendations for improving transparency, enhancing governance, and ensuring equity in healthcare delivery. Keywords: Healthcare, information asymmetry, moral hazard, supplier-induced demand, telemedicine, AI in healthcare, health policy