Economics of Healthcare

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ECONOMICS OF HEALTHCARE

(1) Explain how the following concepts are linked to the issue of health care in the UK

(a)
 of resources (3 marks)
(b)
 (3 marks)

2/ What factors are likely to push the
 for health care higher in the years ahead? (6 marks)

3/ What is meant by health care rationing? How is it done in the UK? Is it fair to ration health care? (8 marks)

1.a)  The idea behind the scarcity of resources is that there is an infinite demand for resources in the world but only a finite supply. This theory was particularly felt in the NHS where they have only a finite amount of resources, i.e. the amount of land that they possess and the hospitals that they build upon them. The problem is that there is a permanent supply of people who need care. From the Accident and Emergency section, through to the elderly who need constant maintenance and care. Within the NHS, there is a permanent demand for medicines and equipment, but there is only so much supply.

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b) Opportunity cost occurs regularly in the NHS, but it can also occur in two forms to do with the NHS. If the government decides to spend money on the services in the NHS, it means that they will not be able to give subsidies to any other important part of our social system such as education or the emergency services. Within the NHS however, if the money given is spent on medical equipment to help the elderly, there will not be any money to spend in the Paediatrics department.

2) There will always be a constant demand for ...

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