Last week in a Medical Care Class at the BU school of public health, we discussed about the health market, professor said that the health market is an imperfect market, because it doesn’t have the characteristics and assumptions adhered to a perfect market. A perfect market has some assumptions like rationality of the market actors, no transaction cost (no information cost and taxes), no price taking behavior and there is sufficiently large number of participants such that no individual can affect the market and freedom of decision. Professor told us that the health market is imperfect because the following assumption is not a case in this market(1):
- Power Equal
- Real competition and choice
- Full information
- No price fixing
- Transparent to buyer and seller
Patient and doctors don’t have an equal power, in most areas competition is not a case since there is no different health providers. For example in some countries only one neurosurgeon works, or because of the insurance policy patients are not allowed to visit any doctor that they wish.
But my question is what about we look at the health care as a fundamental human right, if so; we can not simply analyze the health system from a market perspective. In this case health is not only a commodity with all of characteristics related to goods, it is a right, and we need to take into the account the costs of providing a right to citizens and in some cases it can be an imperfect market.
(1) Courtesy of Professor Bill Bicknell
Interesting question, but we should never stray away from human rights. Market will always remain a market. Companies that provide goods will always want more and more, even at the expense of humans. Insurance companies all fall in the same basket, (the don’t care basket). They determine on who you will see and what care you need…depending on how much you have. So to put it bluntly, They do not care for you! but rather for whats in your wallet.
Fabian
Dear Fabian,
Thanks for your comment, that is true, but I think public health and human rights activists have to advocate the point and push the governments to spend more resources on health, as a human right, if health professionals accept the fact that health care is something that if you have money you can buy it if you don’t you are out of the market, we never can fill the gap and inequality in providing health to those who actually don’t have access.
Syamak