Health care economics is one branch of economics that deals with problems like scarcity in the distribution of health care. A general overview of this study includes social issues in healthcare (alcoholism, smoking), health care system, and allocation of funding to public healthcare. Early studies in this field can be attributed to Kenneth Arrow when he published his article titled “ Uncertainty and the Welfare economics of medical care “ in 1963. Nowadays, numerous researches dwelling on health care economics just shows the importance of this issue to modern living.
The study of economics would always be a relationship between supply and demand, and healthcare is no exception to such. First, it must be understood that healthcare is a derived demand since it is affects the result of health and must be directly consumed ( Newhouse, 1996) in order to feel its benefits. Although people would not like the idea of receiving this service, they have no choice when they get sick.
In fact, Evans and Stoddart (1990 ) asserts that “Health care is one the determinants of health and from an economic perspective, it is simply an input into the production of health”. This is the main reason why government should spend on healthcare since healthy citizens are more productive and costs less to society. Even individuals should ideally spend for their own preventive healthcare so they would not get sick thereby reducing downtime in terms of man hours. Unfortunately, people do not prioritize healthcare issues all the time since there are other equally important things to spend for such as food, education and housing. It is only when one’s health is endangered do people pay attention to this issue; thus, people even buy costly medicines when they are really sick. On the other hand, Kowalski’s paper in 2003 revealed that “medical care and prices have an elastic ...
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To look at a very simple example of how costs are driven down by technology let’s discuss the invention of solar panels. The thermal generation of electricity costs a lot as power stations have to be fed in with coal and wood as raw materials. The cost of such electricity would obviously increase in the future as the prices of coal rise due to supply contractions that would eventually lead to a continuous increase in electricity costs with the passage of time.
The debate on whether the American system of health care is the best in the world continues to persist. Unfortunately, the rising costs of medical care, insurance coverage issues, and disparities in health care provision among various population groups deny the relevance of systemic developments in U.S.
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Assimilation of technology in various operations undertaken by health care practitioners such as nurses and physicians has called for a long process. In this case, these changes can be identified by assessing the situation as it was twenty years ago in terms of data handling and analysis in health care institutions.
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In their final declaration, the conference participants agreed on an idealistic and kilometric definition of primary health care as "care based on practical, scientifically sound, and socially acceptable methods and technology made universally accessible through the people's full participation and at a cost that the community and country can afford, in each and every stage of development, with a spirit of self-responsibility and self-determination
Throughout years, the United States invested considerable resources in advancing the quality and efficiency of its health care system. A rigid division between medical services that are necessary and those unnecessary to patients is one of the definitive features of the