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A MICROECONOMIC MODEL OF HEALTHCARE SYSTEMS: FROM THEORETICAL TO PRACTICAL

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Date Issued:
2007
Abstract/Description:
This thesis is a microeconomic market analysis of healthcare systems. Different countries use various forms for financing and providing healthcare, and the effects of market forces on the quality, access and economic efficiency of these divergent healthcare markets is the primary subject. The purpose of this thesis is to describe the forces working in the healthcare market. Free-market healthcare systems allow medical providers to become price-setters. Price-setting by medical providers creates an economically inefficient system which decreases public access to healthcare but creates a high quality system. Single-payer systems make government the price-setter which creates a system in which medical providers are price-takers. Government price-setting guarantees access but quality and economic efficiency vary drastically between countries. Universal single-payer systems tend to set prices higher than the theoretically necessary price which creates a high quality, economically inefficient system. Socialized single-payer systems tend to set prices lower than the theoretically necessary price which creates government savings, wait-lists and poorer quality. The quality, economic efficiency, and equity of the healthcare system are determined by the form of the market used in the country. Ultimately, this market determines price. In a free-market system price is determined by providers of healthcare, in a socialized market price is determined by government, and in a universal healthcare system price is negotiated by both healthcare providers and government. Price negotiation in a universal system creates the greatest access to healthcare, and quality of healthcare. Socialized systems can be more economically efficient than a universal system, but quality and access can be limited. Price negotiation in a universal healthcare system fixes the problems of price negotiation inherent in the healthcare market.
Title: A MICROECONOMIC MODEL OF HEALTHCARE SYSTEMS: FROM THEORETICAL TO PRACTICAL.
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Name(s): Helligso, Jesse, Author
Hamann, Kerstin, Committee Chair
University of Central Florida, Degree Grantor
Type of Resource: text
Date Issued: 2007
Publisher: University of Central Florida
Language(s): English
Abstract/Description: This thesis is a microeconomic market analysis of healthcare systems. Different countries use various forms for financing and providing healthcare, and the effects of market forces on the quality, access and economic efficiency of these divergent healthcare markets is the primary subject. The purpose of this thesis is to describe the forces working in the healthcare market. Free-market healthcare systems allow medical providers to become price-setters. Price-setting by medical providers creates an economically inefficient system which decreases public access to healthcare but creates a high quality system. Single-payer systems make government the price-setter which creates a system in which medical providers are price-takers. Government price-setting guarantees access but quality and economic efficiency vary drastically between countries. Universal single-payer systems tend to set prices higher than the theoretically necessary price which creates a high quality, economically inefficient system. Socialized single-payer systems tend to set prices lower than the theoretically necessary price which creates government savings, wait-lists and poorer quality. The quality, economic efficiency, and equity of the healthcare system are determined by the form of the market used in the country. Ultimately, this market determines price. In a free-market system price is determined by providers of healthcare, in a socialized market price is determined by government, and in a universal healthcare system price is negotiated by both healthcare providers and government. Price negotiation in a universal system creates the greatest access to healthcare, and quality of healthcare. Socialized systems can be more economically efficient than a universal system, but quality and access can be limited. Price negotiation in a universal healthcare system fixes the problems of price negotiation inherent in the healthcare market.
Identifier: CFE0001821 (IID), ucf:47355 (fedora)
Note(s): 2007-08-01
M.A.
Sciences, Department of Political Science
Masters
This record was generated from author submitted information.
Subject(s): Economics
Healthcare
Politics
Germany
United States
United Kingdom
Persistent Link to This Record: http://purl.flvc.org/ucf/fd/CFE0001821
Restrictions on Access: campus 2008-07-01
Host Institution: UCF

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