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February 10, 2008
Health, market or essential human right that is the question
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 for citizens and in some cases it can be an imperfect market.
(1) Courtesy of Professor Bill Bicknell
Posted by Syamak Moattari at February 10, 2008 11:56 AM
