How Private and Public Financing of Healthcare Affects the Demand for Healthcare Services - Essay Example

Private financing of health care also motivates people into seeking care services in order to utilize offered opportunities by their medical covers. A minor case that could be managed at home will, for example, prompt health care services because there is no direct cost to be incurred. This is contrary to a condition in which a patient has to spend liquid cash when seeking care services and it increases demand for healthcare services. Reliable financing of healthcare costs from the private sector also motivates the supply of diversified care services that in turn motivates demand.

Public financing, however, ensures the delivery of care services at affordable cost and the provision of services that are not profitable to the private sector. It, therefore, generates demand for care services from people who cannot afford medical care covers and those who have explored their covers to set limits. Public financing of health care has also been organized into medical covers that meet people’s health care costs and this makes healthcare affordable, facilitating demand. Private and public financing of health care, therefore, affect the demand for health care services by making the services affordable and facilitating the desire for and supply of the services.