Question

1. Markets and government regulations are both needed to provide healthcare goods and services efficiently and effectively.

Answer 1

The efficient institutional arrangement will achieve through market regulation and government intervention. From traditional perspective, the healthcare was mainly regulated by the public sector. The major regulations include production and distribution of health related services like hospital and pharmacy owners, professional associations etc. The financial services include the organisations functioned behind this like governmental and nongovernmental. One of the major problem which healthcare faced is the asymmetry of information regarding the quality, prices and medical and financial effects on patients and their families.
The major objective of the healthcare are; efficient quality of the care from health, value of money which paid for the services rendered by the healthcare, social agreements with fairness and equity and the accountability. The fulfilments of these objectives make the healthcare efficient and the services more effectively. The private parties in the healthcare will increase the efficiency and the more technological measures. There is a high chance for market failure in the health care. The over collaboration of the private parties will create expensive services n this sector. The appropriate state intervention can reduce the increasing hegemony if private sector in the healthcare. The major government intervention policies are public funding, taxation and subsidies, regulations through private control and quality control, cost benefit analysis in the health service etc.