Question

Reference based on Health Economics and Policy by James W. Henderson (2017).

One factor that determines the specialty choice of new medical school graduates is the income potential of the specialties. If these incomes are not determined in a competitive labor market, then it is possible that the number entering a given specialty will not meet an efficient level. The current system, dominated by Medicare and large insurance companies, is not competitive. Some claim that the lack of competition in the market is responsible for shortages in some specialties.

A. What are the conditions for a competitive market for specific medical specialties? Are these conditions met in our health care system?

B. What factors influence the demand for medical services? Is it possible for patients to demand more physicians than government or private payers desire?

C. Is there a shortage of primary care physicians? How do economists answer this question? How can we address this issue?

Answer 1

A)

• Providing less health care cost such less bills, delivery costs etc is most important competition element.
• New technological machineries and medical equipments also drives the present health care tradition.
• The next element is providing insurance, schemes, plans and finance regarding healthcare plans.
• The overall size, number of operational theatres, number of doctors in a same field, number of patients the hospital can accommodate ; all these elements also drives the competancy.

No these conditions are not met in our health care system completely. If some conditions are met, then there will be lack of other conditions. It is because the present health care systems are too greedy on profits more than the patient's satisfaction.

B). The health care demand is dependent only on the level at which an individual takes health care services when he/she is facing injury or illness. This level is dependent on the levels of income of the individuals, education, beliefs and traditions, cost regarding the injury care or illness care and quality of the medical services.

Yes, patients can demand more physicians. Because inorder to maintain a successful health care system, it have to satisfy the needs of patients.

C). Yes, there is a shortage of primary care physicians.

The primary care shortage is mainly because that most of the medical students doesn't take primary care. Also many physicians have been shifted to hospitals instead of primary health centres.

This issues is mainly observed in poor rural areas. Due to this condition, people have to go to a hospital when he is facing a small illness or injuries. This increases the cost of care and poor people are facing this major issue.

Thanks!..