Question

Identify and describe the current state of the health care industry using Microeconomic analysis. List the pros and cons related to the current children-only healthcare program and supplement with research from a reputable online source or newpaper/magazine. Apply either supply/demand analysis, elasticity analysys, or the examination of market structures. Develop your own solution to this social issue.

Answer 1

Pros:

Very effective detailed child care programs, affordability in rural areas, subsidy to high cost treatment, multiple insurance availability for parents.

Cons:

Healthcare management trends have witnessed large scale policy implementation failures, high rise in physician compensation, lack of accessibility of quality child care, Bureaucracy in managing.

However market structure has seen perfect competition because of multiple licensing and proliferation of hospitals in geographical areas. The biggest problem arisisng is quality care which is costliest as physicians wage are higher. To overcome this we recommend economies of scale in operations and mergers and acquisition between healthcare institutions.