Question

1-Explain the potential benefits from greater public sector involvement in healthcare sector industry?

2- Explain how government actions that promote health are pure public goods that private markets would not produce them.

Answer 1

Answer:- There is world wide acceptance that healthcare industries needs reforms in developing countries as well as developed countries. Public health care system is way too good than private healthcare system because of following reasons:-

(1) Quality as well as effectiveness- Public healthcare system reduces the financial risk for individuals, even insurance also open up new chances for consuming expense through expensive treatment and medication. Sometimes private care exploit patients in many different ways.

(2)public health care system are more efficient :- Market driven healthcare do not promote quality and efficiency as there main goal is profit maximisation. Patient do not have much knowledge to make choices from private or public health care. Paitent do not negotiate when they need treatment urgent or they are vulnerable because of sickness. Incase when illteracy and poverty are widespread. This type of situation is known as information asymmetry in healthcare sector. Public healthcare is more efficient in supply of drugs and equipment as well as it's distribution.

(3) Promotes equity in society :- cost of treatment in remote area is much higher than sub- urban and urban cities. People with low income or below poverty can't access medical care from private healthcare sector due to it's expensiveness.

For eg - Ontario (Canada) 1% of province patients are majority elderly with multiple chronic disorder consume 34% of healthcare spending and 50 % of hospitals.

Answer (2) Due to following reason government actions that promote health are pure public goods that private markets would not produce them:-

(1) public health is one of the many things that government invest in with serious concern. As it promotes welfare and security throughout the society. Providing healthy food to lower income areas through local authorities. Many developing countries like in India free meal is provided by government in public schools. ( mid day meal)

(2) monthly ensuring team of government officials to make visit to public hospitals that they are running in proper order or not.

(3) prevent the spread of communicable disease that are caused by virus, bacteria and other agents. Implementation of controlled measures during such out break of disease.

(4) protection against environmental health hazard - By monitoring time to time air and water quality. Promoting healthy environment and making policies and programs to prevent from environmental health risks. Identify waterborne disease, air borne disease, radiation, public health nuisance, food borne disease etc.

(5) development and maintenance of health infrastructure all around the country as per requirement so that it can meet basic capacity of that locality. Health research, evaluation and quality improvement, policy development, health planning. Providing information and education about health benefits etc.