BHA FPX 4112 Assessment 1 Instructions: Health Production Function Example The Supply and Demand of Health Care

BHA FPX 4112 Assessment 1 Instructions: Health Production Function Example The Supply and Demand of Health Care

BHA FPX 4112 Assessment 1 Instructions: Health Production Function Example

The Supply and Demand of Health Care

Access to quality healthcare services is a constitutional right and a subject of economic scrutiny. In this sense, it is essential to incorporate principles of demand and supply to determine efficiency, effectiveness, values, and consumer preferences regarding healthcare. Another justification for embracing health economics is to account for national and global expenditures for healthcare services, equipment, and infrastructure.

Since everybody has the right to access quality care, countries invest massively in addressing social determinants of health that influence populations’ willingness to pay for healthcare services and insurance premiums. Despite these justifications, economists face a daunting endeavor when integrating standard principles of demand and supply to healthcare because it sometimes circumvents these guidelines due to underlying factors that influence accessibility, affordability, and quality.

As a result, this paper compares supply and demand for healthcare services and an automobile while emphasizing current legislative trends and the impacts of different reimbursement models on services demand and supply.

Demand and Supply for Healthcare Services Compared to Automobiles

Demand refers to the consumers’ desire to purchase goods and services alongside their willingness to pay the price for specific goods or services. On the other hand, supply entails the number of goods or services available to customers at a given price when other factors are constant. When discussing demand and supply for a particular good or service, it is essential to consider price/cost as the primary factor influencing an individual’s purchase power.

However, it is fundamental to approach the demand and supply for healthcare as uniquely different from other consumer entities like automobiles due to various distinctive features. According to Folland, Goodman & Stano (2017), demand and supply for healthcare services are partially consistent with the normal economic principles due to the presence of uncertainties, prominence of insurance, the problem of information, restrictions on competition, government subsidies, and public provisions, and the ever-expanding roles of non-profit firms.

Factors Influencing the Demand for Healthcare Services and Automobiles.

Price and income

Order Now