Question

1. Discuss controversies surrounding the development of the government’s role in providing, financing, and regulating health insurance and health services.  

2. Discuss the changing nature of health and medical care and the implications for medical practice, medical education and research, and health policy.

3. Discuss the economic reasons for government intervention in a market based health care system. Please be sure to incorporate the reasons identified in your text as well as any additional reasons you wish to provide. Provide a critique of these reasons.

4. Capturing economies of scale is often offered as a reason for the consolidation of hospitals. In theory, if there are economics of scale, consolidation should result in cost savings for hospitals. What do the empirical studies mentioned in your text imply about consolidation for hospitals and cost savings? If not for cost savings, what other benefits are there for consolidations of hospitals.?

5. Discuss the structure, conduct and performance of the pharmaceutical industry. How does its structure, conduct and performance impact patients? Given the structure, conduct and performance of the pharmaceutical industry, predict the responsiveness of the industry to a common disease as compared to a very rare disease. Assume both diseases have very similar impacts on patients.

Answer 1

1.

There are different controversies surrounding the role of government as mentioned. The first controversy is related to the arrangement of funds and financing the health care services and insurance. It has the controversial fact of favouring the current generation at the expense of future generation. Taking up more debt today to finance the services and putting more deductibles and taxes in the future is a controversy. The second controversy is the regulation as it is made mandatory and done through the employers. It causes increased tax burden and redistribution of income. Here, income is taken from one party and given to poor in the form of pay back or other benefits and it creates controversies. The third issue of controversy is not to focus upon the developing sufficient infrastructure for providing services, though services for delivery is announced. So, there is a mismatch and controversy is created.

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