Why Should the Concept of Need Not Be the Sole Determinant of the Demand for Medical Care?

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a) Why should the concept of need not be the sole determinant of the demand for medical care?
Feldstein (2012) stated that if the projected quantity of services required to meet the need of medical care surpass the quantity that people will utilize then physician and hospital will be underutilized. Oppositely, if demand for medical care surpass the projected quantity based solely on a need criteria then surplus demand will occur. Therefore, planning based only on medical care need will be more likely to cause either too few or too many resources (pg. 115).
b) How do you see the implications of Supply and Demand theory show up in your company’s strategies?
Working in a national testing center in UMUC which provides professional certification examinations, our department receives revenues from proctoring exams. We are required track how many people use our services for testing to justify whether we need to open more testing sessions (more demand) or reduce the number of testing sessions (less demand). Some possible implications are to: (1) hire part time employee(s) to open Saturday and evening sessions. (2) reduce full time employees’ working hours to less than 40 hours per week and compensate full time employee(s) with more health benefits (Culyer & Newhouse, 2000, pg. 661).
c) Thinking outside the box, what types of changes could we make that would make health care cheaper?
In our society, when someone is sick, we tend to go straight to specialists and ordered the most expensive and sometimes unnecessary treatment procedures. Knowing this, hospitals bought the latest technology whose benefits are supported by little scientific evidence. U.S. pays for nearly any technology without regard to economic value causing health-care spending has grown nearly three times as rapidly in the United States compare to other developed countries. In U.S., costs are…...

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