healthcare ?

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by Lewis Alexander0 views·Updated Feb 7, 2022
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  1. to what extent of the american healthcare system represent a market failure
  2. Louis,
  3. what is market failure?
  4. Market failure refers to how the market economy can often
  5. fail to achieve the correct outcomes for individuals in society.
  6. Market failure is essentially about
  7. allocated inefficiency in the over allocation
  8. or Reallocation of resources to producing a good or service.
  9. Okay,
  10. okay.
  11. Different forms of market failure,
  12. negative externalities of production when the production of a good has a
  13. negative effect on the third party not involved in the transaction.
  14. Examples include factories and pollution over
  15. production of fentaNYL and overdoses,
  16. inefficiencies in production and complete information.
  17. Asymmetric information about moral hazards,
  18. moral hazard is a situation in which one party gets involved in a risky event,
  19. knowing that it is protected against the risk in
  20. the other party will incur the cost adverse selection.
  21. The free rider problem.
  22. Okay,
  23. what type of good is the american healthcare Market healthcare cannot
  24. be described as a public good because it is extremely rivalrous.
  25. Although you cannot be excluded,
  26. healthcare is described as american as it yields majority positive
  27. consequences to society and the individual who consumes this.
  28. This leads to a market failure as a trend
  29. amongst many merit goods where the goods under consumed
  30. in relation to health care,
  31. it is under consumed by most americans who for one reason or
  32. another do not have access to it or cannot afford american healthcare experiences
  33. unique phenomenon in which those who can afford health care far over consume
  34. the resource as of the moral hazard that private health care corporations,
  35. pharmaceutical industries and insurance firms take part in
  36. This is because once these producers are aware
  37. that an individual can consume the good,
  38. they will be manipulated into paying for things in
  39. the healthcare sector that they do not really need.
  40. The problem with emergency rooms and how they represent a market failure.
  41. Hospital emergency departments are the only part
  42. of the health care system that is required
  43. by federal law to provide care to all patients regardless of ability to pay.
  44. Health care,
  45. cannot be described as a public good because it is extremely rivalrous,
  46. although you cannot be excluded, this creates a moral hazard.
  47. There is also a free rider problem
  48. in emergency care because individuals are currently able
  49. to visit the emergency room without insurance or the means to pay receive care.
  50. The men skip out on the build.
  51. Such free riders forced the hospital to either accept
  52. the losses or spread the costs to other patients.
  53. Recent increases in that demand are driven by patients who
  54. are un endured and typically for non urgent issues.
  55. This shows just how expensive typical healthcare checkups can be that people
  56. are resorting to words for things as simple as standard checkups.
  57. From 1994 to 2004 Visits to hospital emergency departments increased
  58. from 93.4 million to 110.2 million and 18% jump.
  59. Meanwhile, the numbers of hospitals, hospital beds
  60. and emergency departments have declined significantly.
  61. This free rider problem is considered an example of a market failure.
  62. This is because it is an inefficient distribution of goods
  63. or services that occurs when some individuals are allowed to
  64. consume more than their fair share of the shared resource
  65. or pay less than their fair share of the costs
  66. diagram representing a market failure in emergency rooms.
  67. This is our diagram showing the market failure in emergency rooms.
  68. Mhm.
  69. Almost none of us have the knowledge based
  70. almost near problem.
  71. The current state of health care delivery leaves patients with a huge
  72. information disadvantage even if we could
  73. access all the information about treatments,
  74. medications and pricing, which we normally can't,
  75. Almost none of us have the knowledge base to understand it.
  76. That allows companies to artificially inflate prices
  77. With little oversight or accountability.
  78. Places can charge any amount for your visit. Usually based on a 1-5 scale.
  79. These charges are known as a facility fee
  80. and one on the scale means the facility wasn't needed for much,
  81. meaning the charge will be lower,
  82. whereas a five on the scale means the facility was used a significant amount,
  83. resulting in a higher fee.
  84. Places tend to charge a five on the facility fee even if it wasn't used at all.
  85. This is an example of asymmetric information as the doctor can charge you for
  86. a lot as you don't really know how much equipment was used or what the
  87. cost of that. You should really come out too as well as this.
  88. Doctors and other current drivers overwhelmed patients with
  89. information and deliver treatments that often are unnecessary.
  90. This is an example of asymmetric information.
  91. This exists If one party has information that the other likes.
  92. This is said to cause market failure as the correct price
  93. cannot be set according to the law of supply and demand.
  94. Medicare was paying the highest facility fees for their end
  95. release without knowing if the facility was truly even used.
  96. The link between the problem of asymmetric information and
  97. how the government Medicare failed to fix it.
  98. You know, you have a grouper.
  99. Great guy
  100. quickly. Do you think about the Show it on
  101. screen?
  102. All right. Travis.
  103. A
  104. for