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Health Economics - Assignment Example

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The researcher will be seeking out answers to the following questions: What determines the value of a knee brace?  Which has  increased more  rapidly since  1929,  the number of physicians  or the  number of  ancillary health  workers?  …
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Health Economics

Download file to see previous pages... This paper illustrates that since 1929 the number of physicians has rapidly increased as compared to ancillary health workers. This is because of the magnitude to which macroeconomic trends, GDP, and personal income, influence physicians utilization according to the study carried by et al, 2003. As from this year, the GDP and personal income have been shown to increase thereby increasing the utilization of physicians. As more technological advances become of the medicine the demand for less skilled workers will reduce since technology have been shown to do more of the work. Intuitively, the number of skilled workers will grow faster because their labor is needed in supporting technological advancement. The researcher states that just like any goods and services, the value of knee brace is determined by the market forces, that is demand and supply. When the demand is high and supply is low, the value is likely to increase in the market. The paper tells that the operation is a medical service already offered and therefore would require compensation in form of $7,000. This puts the patient in a better place since he or she has received a service which was really needed and at the same point has paid for it. Research and development: This factor affects the US expenditure in health since the innovation of new medicines is essential and needs to be funded. This also affects the increase in demand ...Download file to see next pagesRead More
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