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Download COMPARATIVE HEALTH CARE SYSTEMS
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HEALTH CARE MARKET Dr. Nabilla Abdul Mohsein Al-Sadat HEALTH CARE MARKET Is health care different? What is a market? Model of perfect competition Mechanics of a market Goals of a health care system Universal and equal access to reasonable health care control of health care costs at an affordable level effective use of resources model of a national hcs; it’s structure and functional interrelationships management production of resources organization of delivery of resources health care economic support pop Envi ron ment What is a market? Efficient management input of resources process of resources price Distribution of resources Is health care different? Scarce resources requires allocation requires organization BUT both consumption and investment element costs direct involvement as well irreversible outcomes HEALTH CARE MARKET Is health care different? Yes and No What is a market? A Market is an environment where producers and consumers exchange goods and services at a price Model of perfect competition Large numbers no barriers to entry no monopoly no brand names assumption of self-interest no externalities no risk or uncertainty Main market failures in health care Consumer rationality Risk and uncertainty Information Externalities and public goods competition and barriers to market entry economies of scale and monopoly HEALTH CARE MARKET Model of perfect competition conditions that must be met if a market is to allocate resource efficiently The main market failures refers to the situation in which these conditions are absent, or are contravened in one way or another. Mechanics of the market Supply and demand Demand and supply schedules price elasticity of demand price elasticity of supply efficiency of the market market failure Selected health sector reforms-1 Country & date US (through out 1980’s) Objective Policies Reduce expenditure by altering incentive pattern for providers Introduction of HMO ie. collapse of provider and financing functions so that provider has incentives to keep costs low Degree of success initial one-off savings BUT HMO costs appears to be rising Selected health sector reforms-2 Country Objective & date UK (1989) Increase efficiency through promoting greater competition Policies Degree of success Сreation of an ? internal market whereby providers within a district competes for resources Selected health sector reforms-3 Country Objective and date Chile increase role (1973) of private sector Canada Policies new fee schedule in public institutions establishment of new health insurance fund costusing provincial containment governments as principal payers Success limited success economic recession coincided with the privatisation drive and the limited financial base Universal coverage single source of financier clear accountability Selected health sector reforms-4 Country Objective and date New health Zealand services (1991) more efficient, waiting lists reduced Policies Corporatizatio n of public hospitals - to allow competition Success In the first 6 months, Co H . recorded losses of almost NZ$100 million thus needed another 405 million
