Question

. Identify potential benefits and costs of a Hospital in public economics ?

Answer 1

The cost benefit analysis of hospitals or medical system is a very important part of public economics as well as health economics.Hospitals both private or public plats an integral part in the human society.

Hospitals have both direct and indirect benefits.Direct benefits are those benefits which are directly consumed by the patients in the form of quality health care, timely treatment of diseases, supply of medicines and increased health benefit of getting adequate hospitalisation benefits.Indirect benefits are those social benefits which are accrued to the neighbors or to the society as a whole as a result of improved health.If people are of good health, they can contribute to the economy in various forms as health is an important element of human capital formation.Therefore, to reap the benefits of demographic dividends proper health care system should be developed.Healthy manpower should be there for every nation for economic development.

Cost of hospitals include both direct and indirect costs.Direct costs are those costs which can be measured in monetary terms like the treatment costs, medical equipment costs,infrastructure costs,cost of services of medical personals including doctors,nurses,paramedical staffs, etc.Indirect or non-monetary costs are those hardships of both patients and doctors, their hardwork,sacrifice ,etc.