I’m working on a health & medical question and need an explanation and answer to help me learn.
Feldstein, P. J. (2012). Health care economics (7th ed.). Clifton Park, NY: Delmar.
By successfully completing this assessment, you will demonstrate your proficiency in the course competencies through the following assessment scoring guide criteria:
The basic economic laws of supply and demand do not work the same way in the health care industry as they do in other industries. A few of the contributing issues include: demand cannot be restricted to only those with an ability to pay since health care is considered a basic human right (need versus demand), demand is increased due to a third party (insurance or government) that pays for the service, and our supply is limited based on a highly skilled human resource variable (physicians).
In this assessment, you will consider these contributing issues and others that you identify in your research as they relate to the free market. Compare and contrast the laws of supply and demand of the health care industry with that of the automobile industry and explain how the economic structure of the health care industry is different from other industries. Reviewing the following media pieces may help to solidify your understanding of the economic concepts and industries relevant to this assessment.
Also, make sure to consult the scoring guide to make sure you are meeting the communication criteria and achieving at your desired rubric level.
As you’ve seen in your readings about microeconomics, price, demand, and supply of consumer goods are interrelated. Each affects the other in a free market. The law of supply and demand applies across the spectrum, whether the product in question is an iPhone or an airplane. As a result, supply-demand curves in consumer goods tend to look similar.But health care in the U.S. is a different story. Because market realities are slightly different for health care than for consumer goods, supply-demand curves for health care tend to look different.
You can’t increase supply anymore, because it takes a long time to train doctors and nurses. Especially in periods of high demand, supply is much less flexible than it is for consumer goods.
You can’t decrease demand anymore, because people who are sick or injured don’t have a choice not to consume health care. If they don’t consume it at the point of sickness or injury, they’re likely to consume it later when the condition becomes critical.
Consumer | Health Care | |
---|---|---|
Price | Transparent | Not transparent |
Payer | Consumer | Third Party |
Optional or not | Optional (with the exception of food) | Not optional (care deferred simply leads to more needed care later on) |
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