What Theories Can Economics Draw Upon To Evaluate Health Care Reforms?
Posted by Stephen Cline on February 8th, 2010Hi, I am a stduent studying Health Economics.
I am just wondering what kind of economic theories we can use when evaluating the health care system reform such as NHS reform.
Please let me know if you have any idea and thanks for reading!
Tags: Care, Draw, Economics, Evaluate, Health, Reforms, Theories, Upon
New economic anomalie – Benign deflation (falling prices due to falling percentage of fixed costs to actual end price. Constant demand for a product gives the producer of the product the ability to produce it in greater quantity while keeping fixed overhead prices the same. Thus, the producer can offer the product at a lower price.) could be your economic principle at work in the future.
As it applies to healthcare, the competition of government subsidized healthcare at reduced cost would drive most customers to the least expensive care. giving more HC professionals the incentive to join the govt. program. This lowers the cost to the govt. to attract these professionals which lets them reduce costs further which attracts more customers from the private sector which makes it more difficult for the private HC providers to make a profit which drives them into the arms of the govt. which drops costs further which attracts more customers and so on and so forth until it becomes commonplace for people to use govt. HC and it pretty much becomes a part of our society except for the very wealthy. Govt HC will be better quality and the need for private insurance will be next no nil, thus reducing it’s cost and it can better focus it’s resources on quality of care.