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Final analytical paper - Assignment Example

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The Supply and Demand for Hospital Care in the United States Name: Institution: The Supply and Demand for Hospital Care in the United States Health care in the United States is majorly operated by the private sector. Although several distinct organizations have a stake in the United States health care, statistics indicates that 62 percent of the hospitals are under non-profit organizations while 20 percent are operated by the government…
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Download file to see previous pages The supply and demand for hospital care in the United States is affected by several factors. For instance, people’s individual income and preferences affect their demand for hospital care. It is well established that shortage of physicians, presence of uninsured populations and government regulations significantly affect the supply of hospital care in the country. This paper seeks to elucidate how these factors affect the provision and quality of health care in the United States (David, 2009). a. Income of individuals and their preferences People’s individual incomes enable them to afford hospital care. This is why the demand for hospital care among the employed is considerably higher. Indeed, it is well established that people will likely seek the kind of health care that they can afford. In this respect, the higher the people’s income, the higher their demands for quality hospital care. In health economics, the patients’ demand for hospital care is said to be influenced by the physician given that they know more about patients’ condition. They advise patients on the treatment options that are available for them at any given time and where to seek treatment. It then becomes the responsibility of the patient’s to seek funds for the level of treatment they prefer. As such, it is always more about what the physician prefers rather than what the patient prefers. Nevertheless, the patients reserve the final say because ultimately they will pay for whatever services offered to them. It is therefore true that people’s individual incomes and their physician’s preferences dictate their demand for hospital care. This is the reality of health economics in the United States (Kavitha, 2013). Physicians, based on their training and experience, are able to advice patients on the right hospital care available for them based on their level of income. It would certainly be irresponsible for any physician to advice his or her patient to seek hospital care from high-income health facilities if the patient is not likely to afford. This fundamentally explains why they are required to give their patients a range of options to choose from. A research carried out by the National Bureau of Economic Research in 2012 showed that more people seek hospital care in the states where the average levels of income are considerably high. Although it is a basic requirement, lack of funds significantly stifles the pursuit of quality healthcare. Chronic illnesses are often the most affected as people can live with them long enough. Given that they are not quite debilitating, people often do not find it urgent to seek hospital care. They consistently shove the demands aside in order to deal with other pressing needs like housing. This is especially true for low income earners as they have to make such choices. In the end, the quality of their health becomes compromised as their illnesses become worse with time. This explains why higher incomes are prerequisite for the demand for higher quality health care (David, 2009). b. Insurance Coverage The demand for hospital care is considerably high among the insured in the United States. A research conducted at the Princeton University showed that citizens are currently keen on taking advantage of the government policy on insurance coverage ...Download file to see next pages Read More
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