IDSB04H3 Study Guide - Moral Hazard, Community Rating, Market Failure

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Document Summary

Lecture 8- ch 11- health economics and the economics of health. Need to maximize value for spending (efficiency): better outcome at same or lower cost. Health economics is driving health are policy and health system planning. Remember that factors that lie outside of health care service and systems, including income, education, housing, water and sanitation, social security systems, nutrition and transports. Low cost interventions for developing countries (neoclasical approaches) Comprehensive, primary care- oriented redistributive systems (social justice approach) Ideally health economics assesses fairness and equity in context of local culture, history and politics. If supply fixed and demand high, price goes up. If price is free: demand should go down (moral hazard: ppl over use services) The health care curve: supply goes up, demand goes up, price goes up over time. Patients don"t control health spending (unless all have munchausen"s syndrome) Some health spending has no medical benefit (unnecessary services, profits, corruption, malpactice premiums etc)