SOC382 Lecture Notes - Lecture 31: Substitute Good, Canada Health Act, Paradigm Shift
7 Nov 2016
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Lecture 4: private and public health care (march 16/16) Can be defined as the shift towards encouraging private purchase of hc; the private, for-profit practice of medicine; and, in general, the operation of market forces in hc. With fixed supply and high demand, prices rise until enough people are priced out of the market to balance supply against demand. Applying market principles to hc: scenario 1: you want a taxi to take you to a destination across the city, but you have no money. Should you be taken there anyway: scenario 2: you enter a hospital er with a ruptured appendix but no money. If you agree that the hospital should treat your appendix regardless of your economic circumstances, then you cannot be priced out of the market for appendix care. In other words, there must be an economic model in which there is a floor price (price government will pay) but no ceiling price.
