Demand and Supply of Health Care Services

[Name of Author]

[Name of institution]

Demand and Supply of Health Care Services

Introduction

In this research paper we have examine the economic implications of alleged characteristic of medical care that it is indispensable for life and health. If we analyze the implications for medical care demand when individuals other than direct consumers are concerned with the consumption of medical care by direct consumers. In this research paper we have identified the relationship between private, external, and social demand. Finally, many health-related activities will have effects that extend into future time periods.

Chapter 4

Identify the wider implications of changes in the demand for health services

Since health services are one of the fundamental rights and necessities of human being. The changes in demand of health services have adverse effects on the overall health of the community or nation. In case of increase of demand health services the supply should also match the demand. If the supply is not equal to the demand then it can lead to increase in illness percentage or death rate. Another problem that is linked with the changes in demand for health services is that the quality of health service is also affected in case of increase in demand and inappropriate supply (Kirch, 2008).

Identify the private, external, and social demand for health services

Private demand for health and services relates to the individual's demand for health care services like a person need to be medicated against a disease and he gets that medication through a hospital. External demand refers to the demand other than of individual, but it includes the demand of individual too. Social demand for health care services is the combination of individual demand and external demand of that individual.

Explain how changes in the quality of care will influence the demand for health care

There is great impact of demand on the quality of the health care services provided. Quality is a series of attribute that is dependent on various factors. There are three factors which help to determine the quality of medical care. It includes structure, process and outcome. If the services and facilities provided are effected it will affect the quality it will also affect the process and at the end it will affect the outcome. Increase in demand of health care can distort the quality if the supply is not adequate.

Explain how time costs influence the demand for health services

Time cost adversely affects the demand for health care services. Time cost includes the time consumed for in travelling to the health care facility and waiting in queue for the health services to be served. People measure it as a cost and increasing cost can decrease the demand for health care service.

Explain the factors that influence the demand for health

The equation which is used to explain the influential factors of demand and health is

c = (a × w) + (b × p)

The factors involve in this equation are 'a' is the amount of time that is required by an individual for producing ...