In: Economics
Outline the rationale for and benefits of a publicly funded health service. (20 marks, approximately 250/300 words please)
Governments play a part in delivering or financing healthcare in, by far, the majority of countries. While the essence of participation in the public sector is often a subject of intense political discussion, it is taken for granted that governments ought to play a role in healthcare provision. Maybe the most convincing reason for governments to interfere in healthcare is that healthcare is viewed as a fundamental human right or privilege, as is education. The health of an person is inextricably bound up with his or her wellbeing.
Many people find it unfair for the disadvantaged to be refused healthcare because they could not afford it, and that the state is trying to insure that at least the most basic of healthcare is given to the poorest in society.
There are also significant positive externalities1 in healthcare provision – that is, the social benefit of providing an patient with healthcare always exceeds the private benefit. It is particularly the case for immunization programs where immunization will prevent the spread of infection and disease outbreak. The wellbeing of an person has a impact not only on his or her well-being as discussed above but also on the economic value of his or her labour. Getting a healthy population decreases the absence of sickness and increases the efficiency of labour.
There is no certainty that healthcare professionals with the
greatest value for money (highest quality healthcare at the most
affordable price) will thrive on the private healthcare sector.
There will also be major reductions in well-being if health care
workers delivered low quality healthcare.
For these reasons, health care professionals are also subject to
strong oversight to ensure they reliably provide good
healthcare.