Question

6. Consider a country with under a “Beveridge” model healthcare system with public provision ofhealthcare, but also a private market that provides healthcare to those who are willing to pay more, such as the UK system. Assume wages for healthcare providers (doctors, nurses, etc.) are higher than in the public sector. Could the existence of the private healthcare market negatively affect people who can only afford public healthcare? Hint: think about how higher wages in the private sector may affect the composition of workers between private and public sectors.

Answer 1

The stake of the private health care system in the market will not directly affect the people who can only affors public health care. But the difference between the two stands at efficiency and timely healthcare, which a public healthcare system might fail to provide. As there are higher wages offered ti the private doctors and other employees all the more the fee charged is much higher than public hospitals. Concluding this it can be said that private hospitals are more efficient and effective than public but the patients are not directly affe ted as the healthcare provided in public hospitals is with the affordable rates and acceptable.