Similar to most goods, the demand of services increases with the increase of income among consumers. It also depends on the quality of the stated services and thus better services are demanded more than poor services. Health care services are no exception. Their demand rise and fall in response to price changes and consumer income changes. The health care market is also influenced by the accessibility of information and the precision between the general practitioner, who is the supplier and the patient-consumer.Demand in Health Care Economics Essay
Another major determinant of demand for both private and public health care is the insurance premiums rates. The insurance companies, therefore, form a major element in health care economics since they play the role of offering guarantee to the prices charged by medical practitioners.Demand in Health Care Economics Essay
This however poses a problem in that the medical professionals operates aiming at attaining a certain amount of compensation while all that the insurance companies need is to make profit and as long as they are profitable, then they are contented. The need to provide quality healthcare is not their duty. This is the reason why both medical expenses and insurance premiums keep escalating while the quality of healthcare decreases leaving no space for the genuine delivery of services (Mankiw, 2009, p. 1).
This can actually be solved by getting rid of the insurance companies leaving the medical profession to deal with the customers directly. Otherwise, the government can seriously regulate all the factors that affect health care and ensure consumers of healthcare services are not exploited. This is achievement by making the necessary legislation for proper control of health provision.