Health Economics is one of the areas of economics with the highest developments in recent decades. In addition to providing theoretical applications in the health field, focusing especially on issues of human capital and information problems and uncertainty, economists have increased their leadership and participation in research that seeks to improve understanding on health markets and guide policies in this area (George, 2003).
This advance Health Economics is expressed in their increased participation in publications scientific, thesis, formation of research groups and events academics, in addition, it is explained, on one side by the intellectual progress and the opening of economists to study certain areas and issues characterized by the presence of market failures, and the other, changes and pressures to facing the health sector within the framework of structural reforms and technological advances, including increased demand for medical care and adoption of new technologies, which impacts on costs of production services and health spending.
Discussion
Health Care Economics
Market affairs have expressed a definite economic isolation of producers and consumers of goods and services. In content, they include a wide range of different parts. The scope of market relations or those of other parties of the society is not a constant value (Rodriguez, 2003). The market mechanism is the action by which traders and buyers interact to find the price and quantity of produced goods, thus demand, supply and cost are its main elements.
Perfectly competitive market
Market for medical services
A large number of sellers
The number of sellers is limited, there is limits to entry, and may be even situations that are close to a natural monopoly.
The homogeneity of the product
The heterogeneity of medical services, its feature, unique.
Excellent customer information
Imperfect information
Opportunity to compare the price of the product and its properties
Impossibility or difficulty of comparing prices and features.
Producers seek to maximize profits
The presence of a large number of public or private "non-profit" organizations.
Product sales are generally carried out directly.
In most cases, the role of "third party" - a competent mediator, which pays for much of health care services
Based on this comparison, it can be argued that the market for medical services, in terms of the organizational structure, the market is imperfect competition. At the same time on its main features it is more close to the structures, which in economic theory is classified as a market of monopolistic competition and monopoly. These events effect on the behavior of producers, change their priority goals, the pricing ...