In: Economics
Provide examples of the following types of government intervention in healthcare. Please list how and what the intervention is with each example.
1. government production
2. subsidies for products
3. taxes on products
4. price regulation
5. quality regulation
6. inaction
Government intervention; government intervention will regulate
the monopolies and intervene the activities through providing
subsidies, taxation and other regulating measures. For example,
most of the heart related surgeries and curable activities were
done by the efficient private enterprises. This is very expensive
at the sense. So the low income people are not affordable for this
service. Through efficient government intervention this monopoly
practices were disintegrated and make avail among the low income
people also.
Subsidies for products; subsidies are the forms of government
intervention which tries to improve the supply of healthcare goods
and services. This will also focus to keep the prices at low level
among the needy people. Increasing the supply of medicine for
deadly diseases at low cost in hospital itself is the best example
for the subsidies in healthcare. This subsidies given to the
medicine producing company helps them to expand their production
and improve their supply also.
Taxes on product; health taxes mainly imposed on harmful predicts
like tobacco, fossil fuels etc. This will try to reduce the
production among low income people and those who lives in the below
poverty line. If a person who is a single earner for this house
will consume a high level of tobacco every day. This will affect
the productivity of the person and at the same time. If he was
affected by any disease, his family will leads to poverty and other
social problems.
Price regulations; this made to ensure the coverage and access
among the less affordable people. For example, the healthcare
providers in rural and remote areas. Most of the rarely occurred
medical camps in rural areas help the low income people.
Quality regulations; health is one of the most important concern of
every people. For example, pharmacist leads medication therapy
management which tried to reduce the total cost in the medical
care.
Inaction; focus on the importance of infection control. Spreading
of infectious diseases will lead to pandemic and epidemics among
the society. Proper methods like quarantining of infectious patient
from the rest of the society helps to reduce the spreading of the
disease within the home and community.