Question

Detail and discuss what happens when the quality of medical care rises. In addition, detail and discuss what happens when the increase in the quality of medical care is unobservable to the consumer (like a reduction in the probability of an adverse reaction to treatment).

Answer 1

A rise in medical care quality is one of most crucial steps in patient welfare. A rise in quality essentially reduces the time and effects of treatment. A quality care helps to service a patient in a most sophisticated manner which ultimately reduces some of the overall pain one is going through. A better quality does add up a bit in a patient's bill but ultimately it delivers much better results.

Some of medical products and procedure which consistently go through development can some time fail to prove the quality hike as patients perceive them as just a rise in cost without much benefits. However, these small betterment actually helps to bring down a lot of complications. But demand for quality medicine and care tend to be low because they cost more, So, unless these developments are marketed well their demand tend to be low.