Unit 7 Assignment - Essay Example

Given that the society consists of people who can afford to purchase drugs at high prices and others do not have the capacity, it should not impose limits on pricing. It should allow the practice of price discrimination, so as to ensure those with financial difficulties access the drugs at a fair price. More to these, it should encourage public subsidies to enhance access to critical care, as well as conform to its moral obligation to its citizens. In addition to this, limiting prices would result in low volumes of production in the industry, thus making it inefficient (Reinhardt, 2001).

The government should not impose limits on the amounts purchased as it cannot control the illness of its people. Most elderly citizens in the country have chronic ailments; hence limiting the amounts to be purchased would interfere with their medication process. More to these, the rest of the population faces a range of diseases, which require unlimited access to medication for their recovery. Therefore, such limits should be discouraged as they can reduce the life expectancy of the population, thus hinder their contribution to the growth of the economy as their productivity level decreases (Kleinke, 2001).

These financial figures give the incomes and expenses of the three hospitals. The expenses of the hospital are quite high, making two of the hospitals operate at loses. This follows the 1.0 income expenses ratio, which shows that the hospitals incur huge expenses to operate. Most of the expenses relate to the programs of the hospitals, which mean that the health conditions of the people visiting the hospitals are critical. Watuaga medical center, for example, spends 92% on expenses related to the health, while Ashe uses 81% of its expenses to finance such costs.

Ashe memorial hospital manages to earn an annual profit. Consequent to this, the hospital has the capacity to set aside a substantial amount of the profit, and invest it in promoting