The recent emergence of higher education into political and economic debate is reminiscent of the ongoing arguments about the appropriate provision of health care in the United States. Health care reform has been a political battle cry in the United States for years, and there are similar calls for reforms of higher education. These two industries share more than a place in political debate, though: Both are seen by many as necessities, both are characterized by rapidly escalating costs--and neither operates in an economic market that is anything close to "normal." These similarities position health care and higher education for either increased government intervention or radical change. The purpose of this paper is to draw parallels between these two industries and analyze the implications of these similarities to public policy or private innovations.