the government provides the Public of health care to the residents is free of charge or at low cost. Market refers the medical services through the market mechanism, and it provides that service provider recovers costs through fees and charges. It provided it refers government-subsidized health care services, and a fee to patients approach. In the mode of delivery, the government subsidies for free medical services. The government makes up for it cannot recover the costs, but the government improves the supply of medical services. In addition, government also can give health care services to residents.
The advantages and disadvantages of demand-side path
Subsidies of free service follow the teachings of the market economy. Government subsidies should be given to public medical and health institutions, it should introduce mechanisms for purchasing services. Financial resources will provide direct subsidies to the residents. On behalf of residents to public hospitals, private clinics and hospitals purchase medical services. This approach of the core idea and the introduction of market mechanisms give full play perfectly competitive free market, the three mechanisms - the competition, the price of supply and demand improve the quality of health services and efficiency. In this way, passing through the market price information guides medical institutions to compete and win the market, improving service quality and lower prices. Demand-side subsidies, the superiority is obvious. First, the demand side for residents, the basic medical expenses will be subsidized; financing fairness can be improved health services and improve purchasing power, effective demand. Demand side can be a certain degree of release and satisfaction. There is...
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...First, the lifting of price controls, price decided by the health care market, according to microeconomic theory. Under conditions of free competition, this price could at least ensure that the hospital's normal profits. If the hospital can achieve a normal profit, then the motivation to improve health care costs will disappear. Hospitals must consider its own position in the competition and thus have an incentive to protect their own reputation. Hospitals will also enhance the doctor's professional ethics constraints. At the same time, due to serious illness insurance plan will pay the bulk of medical expenses, insurance companies have enough power to monitor the behavior of a doctor-induced demand. Information asymmetry still exists, but effective monitoring and the establishment of a strong constraint, efficiency will be much higher than the publicly funded system.
...t them attain the services easily and at lower costs. In addition, these hospitals have the potential of managing effectively their cash flow. A fixed and proper payment system to the workers of the small health centers can m motivates them to avail quality services to the medical beneficiaries. Small hospitals can be able to have bonus payment in case they provide care in areas short of professional health. Hence, small hospital can implicate appropriately their method of payment. Conversely, there might be a risk possibility when it comes to accessing low amount due to the nature of the illness of the patients, the involvement of high cost of treatment amongst many other factors. In the vent that the overall health care costs are more than earlier anticipated, the hospital and the doctor shall receive less profits. This can have a negative impact on the hospital.
I agree with Heath’s argument that a two-tier health care system is effective as long as it does not undermine the integrity of the public insurance mechanism. The main argument against the two-tier health care system is that doctors will turn away from the public sector to pursue a higher income within a private practice. The concern arises that this will cause a scarcity of doctors within the public sector. I believe this argument is invalid and will discuss throughout this paper why the two-tier system improves upon health care systems in many ways.
Health has become an expensive affair to most people especially those that suffer from long term diseases such as diabetes. Most of the uninsured people in the neighborhood do not get the relevant healthcare service and hence they need a source of better services such as free clinics that can deal with the major issues affecting health (Huntington, 2012). The mobilization of these free clinics comes with a price as they affect the community both positively and negatively. Free clinics can either be temporary or permanent and this incurs different expenses depending on the type of structure chosen. Free clinics are effective for those people without insurance as they tend to get treatment for different diseases and this improves the lives of they serve and especially the uninsured.
6. The special characteristics of the U.S. health care market are Ethical and equity considerations, asymmetric information, spillover benefits, and third-party payments: insurance. Each one of these characteristics affects health care in some way. For example, ethical and equity considerations affect health care in the way that society does not consider unjust for people to be denied to health care access. Society believes that it is the same thing as not owning a car or a computer. Asymmetric information also gives health care a boost in prices. People who buy health care have no information on what procedures and diagnostics are involved, but on the other hand sellers do. This creates an unusual situation in which the doctor (seller) tells the patient(buyer) what services he or she should consume. It seems like the patient has to buy what the doctor tells him. The topic of spillover benefits also cause a rise in prices. This meaning that immunizations for diseases benefit not only the person who buys it but the whole community as well. It reduces the risk of the whole population getting infected. And the last characteristic is third-party insurance. Which involves all the insurance money people have to pay. This causes a distortion which results in excess consumption of health care services.
Access to health does not only relate to how available the services are but also how they are delivered at the point of care. People should have access to equity healthcare which means the provision of fair goods and services and opportunities needed for the physical, psychological and spiritual health (McGibbon, Etowa & McPherson, 2008). These health services can be made available through the creation of more public clinics and hospitals. Several studies done in developing countries indicates that introducing medical user fees leads to reducing utilization which tends to affect the poor (CSDH, 2008).
An issue that is widely discussed and debated concerning the United States’ economy is our health care system. The health care system in the United States is not public, meaning that the states does not offer free or affordable health care service. In Canada, France and Great Britain, for example, the government funds health care through taxes. The United States, on the other hand, opted for another direction and passed the burden of health care spending on individual consumers as well as employers and insurers. In July 2006, the issue was transparency: should the American people know the price of the health care service they use and the results doctors and hospitals achieve? The Wall Street Journal article revealed that “U.S. hospitals, most of them nonprofit, charged un-insured patients prices that vastly exceeded those they charged their insured patients. Driving their un-insured patients into bankruptcy." (p. B1) The most expensive health care system in the world is that of America. I will talk about the health insurance in U.S., the health care in other countries, Jeremy Bentham and John Stuart Mill, and my solution to this problem.
In order to provide affordable health care, government should have huge amount of money to be invested in the hospitals, for arranging doctors and for financing.
If we accept the price declining effect of managed care, the states should build down the regulations of managed care institutions. However, better information of the population and the health sector actor is crucial to avoid the previous misinterpretations. Moreover, the managed care institutions have to be incentivized to create contracts that are available and acceptable for less healthy people also.
Universal health care refers to any system of health care managed by the government. The health care system may cover different programs including government run hospitals and health organizations and programs targeted at providing health care. Many developed countries such as Canada and United Kingdom have embraced universal health care with the United States being the only exception. The present U.S health care system has often been considered inefficient in terms of cost control as millions of Americans remain uncovered. This has made it the subject of a heated debate characterized by people who argue that the country requires a kind of socialized system that will permit increased government participation. Others have tended to support privatized health care, or a combined model of private and universal health care that will permit private companies to offer health care for a specific fee. Universal healthcare has numerous advantages that remain hidden from society. First, the federal government can apply economies of scale in managing health facilities which would reduce health care expenses. Second, all unnecessary expenses would be eliminated by requiring all states to bring together all the insurance companies into a single entity whose mandate would be to provide health insurance to all people. Lastly, increased government participation will guarantee quality care, improve access to medical services and address critical problems relating to market failure.
A health care system that provides free health care services to its entire citizen can be termed as universal health care. This is a situation where all citizens are protected from financial costs in health care. It is recognized around the globe as it provides a specific package of benefits to all citizens in the entire nation. For instance, free health care can result to improved health outcomes. In addition, it provides financial risk protection and an improved access to health services. There is an increasing debate on how citizen should be provided with free medical services. Although United State does not permit free health care services it should have free health care for all citizens. This is due to the fact that healthcare is the largest industry in United State. Due to the fact that United State is a rich country, it should have a healthcare system that provides free services such as treatment for its entire citizen. This will play a significant role, as it will stop medical bankruptcies in...
However, according to Jenna Flannigan, write at Healthline.com, America’s current for-profit system allows for competition between medical and pharmaceutical companies which drives prices up astronomically. “In countries where health insurance is government-run or nonprofit-run, there is no profit factor to drive up prices…For example, a typical bypass surgery in the Netherlands costs about $15,000 while in the United States it costs about $75,000” (Flannigan). This figure illustrates how the US’s needless competition between private, for-profit organizations make medical care unnecessarily unattainable to those who aren’t very affluent or do not have comprehensive medical care. These bloated prices do not even contribute to better care a majority of the time, as pointed out by political consultant Karin J. Robinson. “Here in Britain, for instance, we spend about 8% of the country's annual GDP on health care, compared to 15% in the US, and yet the overall health of the population is similar, with perhaps even a slight advantage for the UK” (Robinson). America’s current system is far more expensive, but for what reason? A healthcare system should be driven a will to help those in need, not for the personal gain of companies that are rife with greed. America needs to follow the path of other first-world nations and take a different approach to
Despite the established health care facilities in the United States, most citizens do not have access to proper medical care. We must appreciate from the very onset that a healthy and strong nation must have a proper health care system. Such a health system should be available and affordable to all. The cost of health services is high. In fact, the ...
The United States health care system is one of the most expensive systems in the world yet it is known as being unorganized and chaotic in comparison to other countries (Barton, 2010). This factor is attributed to numerous characteristics that define what the U.S. system is comprised of. Two of the major indications are imperfect market conditions and the demand for new technology (Barton, 2010). The health care system has been described as a free market in
The cost of US health care has been steadily increasing for many years causing many Americans to face difficult choices between health care and other priorities in their lives. Health economists are bringing to light the tradeoffs which must be considered in every healthcare decision (Getzen, 2013, p. 427). Therefore, efforts must be made to incite change which constrains the cost of health care without creating adverse health consequences. As the medical field becomes more business oriented, there will be more of a shift in focus toward the costs and benefits, which will make medicine more like the rest of the economy (Getzen, 2013, p. 439).
Poor Medical health care is something prevalent in many countries. Every family all over the world has suffered deaths due to poor medical healthcare and insurance. The decreasing in the quality of health services provided to the individuals and patients is Poor medical healthcare. Poor Medical Health care is a critical problem that has to end, as studies about it showed that adults in the United States receive half of the needed health care services (EA & RH, 2001), and not only adults but also all types of citizens including children, if this problem did not end deaths of people will significantly increase (Cecere, 2009). Poor Medical health insurance can end with the aid of many solutions that will be proposed within this research paper. Thus, poor medical health care as mentioned before is a detracted problem that has to end because it is the reason of many peoples’ deaths.