QUESTION OF THE DAY. Did Natasha Richardson Die from Socialized Medicine?

The province of Quebec lacks a medical helicopter system, common in the United States and other parts of Canada, to airlift stricken patients to major trauma centers. Montreal's top head trauma doctor said Friday that may have played a role in Richardson's death.

Commenters to the post suggest it's not that simple. It's useful to keep in mind, however, that "single payer" also means "single buyer", as this commentary explains.

The essence of "single payer" medicine is that no one other than the government is allowed to pay for medical care. Thus the term "single payer."

In economic terms, monopsony.

A monopsonized market will therefore be characterized by a smaller quantity traded and a lower price than a competitive market with the same demand and other costs of production.

Monopsony power, like monopoly power, results in economic inefficiency. This is because the monopsonist avoids purchasing the last few units of a good whose value to the monopsonist is greater than their marginal cost, in order to hold down the price paid for prior units. In principle, inefficiency from monopsony can be mitigated by a well- placed legal price floor, which removes the monopsonist's power over price and eliminates its incentive to restrict the quantity it purchases. A modest price floor forces the monopsonist to take price as given and increase its purchases toward the level of competitive buyers. However, if the price floor is too high, the monopsonist will reduce its purchases -- just as competitive buyers would do in response to a price floor -- and inefficiency recurs.

The exercise of buying power by the canonical coal mine, or the chain store, is a bad thing, but somehow it gets transmuted into something good in the canonical state liquor store, or the state health service. Discuss.