It maximizes net welfare to the society and ensures lower levels of inequality between different strata (Kowalski, 2008)
Government regulation and control is necessary to enhance the performance of physicians and the quality of healthcare. There are high costs associated with private health care (high fee, expensive medicines). Also, the government enables doctors to focus on healing the sufferings of the patient rather than on their ability to pay fees and/or insurance procedures etc (Kowalski, 2008).
The government would be a big mistake as efficiency and productivity would be lower just the way it is in state institutions. Also, research and development expenditure in government owned health care would be little or non-existent because of lack of incentive to innovate (Lemco, 1994)
Furthermore, money for free health care would ultimately have to come through higher taxes and/or reduced public expenditure in other areas (Kowalski, 2008). Also, public health care would become infused with the corruption, lobbying, bribery and nepotism that are often prevalent in government-owned institutions/systems (Kowalski, 2008). Moreover, doctors would be discouraged from pursuing their careers in healthcare (Lemco, 1994). Also, patients are likely to suffer from long waiting queues.
If the utilitarian rule is applied, then this system correctly maximizes net welfare of the society and leads to greater social benefits than costs. Furthermore, people cannot be devoid of a fundamental human right (the right to a healthy life) just because they cannot afford it. Also, it is imperative for the more advantaged persons to take care of the less advantaged.
There has been increasing concern over the high cost associated with healthcare and the inability of government institutions to bear their burden. Countries such as the U.S and U.K where health care is almost fully subsidized face ...
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