Question

What are supplier induced demand and prescription authority? What are the problems associated with each?

Answer 1

Supplier-induced demand (SID)

The existence of asymmetry of information between supplier and consume leads to Supplier-induced demand (SID). The supplier may use the information to encourage an individual to demand a greater quantity of service they supply. This may result in the low welfare of the client.

The healthcare sector is considered as a market by the health economists, where a distinct demand and supply phenomenon exists. The inappropriate and unjustifiable demand for health care among the patients leads to, supplier-induced demand (SID). Where healthcare expenses are met from patients pocket this adverse practice may push a poor family into a vicious circle of poverty and illness. Problems may include unnecessary prescriptions, procedures, medical frauds, prolonged treatments and unjustified user fee. These may lead to the financial burden on patient’s family. The strict laws, policies and vigilant regulation of the healthcare providers can control the supplier-induced demand. For example, the patient is a co-payer and insurance companies pay rest of the amount to the provider. In that case, the provider can impose multiple visits for their profit.

Prescriptive authority or Independent prescribing

Prescriptive authority or Independent prescribing is the ability of advanced practice registered nurses (APRNs) to prescribe the necessary services. They may include prescription and controlled drugs, devices, adjunct health/medical services, durable medical goods, and other equipment and supplies without limitation. It is the battle over two or more healthcare providers in proving who has authority to prescribe medication. As in case of the psychiatrist versus the psychologist. In healthcare settings, physicians want to maintain a monopoly over procedures, knowledge, and techniques.

In all most all states in US, prescriptive authority has been broadened to include advanced practice nurses. It is considered as ahistorical development. In this regard, an awareness of federal and state regulations and laws may aid nurses to administer drugs in a safe, effective, and timely manner.

The problems associated may include: Language changes, overprescribing, lack supervision may lead to misuse or low quality of service.