· How would several factors affect the supply of health care services in the short run?

· How would several factors affect the supply of health care services in the short run?

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Expert Solution

Health care service provider is a different industry when compared to other industries in the market. For other industries, a customer may choose a product from one or the other brand but in health care it is not the same. A product which works for a person may not work for another person. Health is not a marketable item. Some of the factors which affect the supply of health care services are discussed below:

Income and poverty: The financial status of the patients (consumers) is one of the main reasons which affects the supply of health care service. The people below the poverty line cannot afford treatment to few diseases. This limits the supply of health care services to that segment of people.
Resources and facilities: In some rural areas there may not be enough resources and facilities for the treatment. It is one of the major constraints for the supply of health care services.
Physician Competence: The knowledge of physician is essential to provide any sort of treatment to the patients. Inefficient physicians also reduce the quality in the treatment making patients feel uncomfortable and unsatisfactory and it may sometime deteriorate their health.
Physician Socio-demographic variables: A physician’s nature and personality affects the quality of the healthcare. His relationship with the patient plays an important role in the treatment.
Severity of illness: Some diseases cannot be treated if they are worsened. So, the degree of severity is also a considerable factor for a proper health care service.

All these factors affect the supply of health care services in the short run.

Rahul Sunny answered 1 year ago

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