Question

1- WHAT IS SPECIAL ABOUT THE NATURE OF AND THE DEMAND FOR PERSONAL HEALTH CARE GOODS AND SERVICES – WHY CAN WE NOT JUST PAY FOR THEM AS INDIVIDUALS, BUT NEED GROUP HEALTH INSURANCE TO ENABLE US TO PAY FOR THOSE SERVICES WHEN WE NEED THEM?

2- Give and briefly explain two (2) reasons why Personal Health Care Services are different as indicated above.

Answer 1

1. What make healthcare unique and different from other goods and services is because it is not clearly defined. We can see that in most industries, the products we are buying are standardised and one can easily go buy what he/she needs to satisfy the needs with variety of options and alternatives available. This is not an option in healthcare. Here, every customer is structurally, emotionally and physically different. What would work for one person, may or may not work for another. Nothing is guaranteed. There is no choice in which type of consumers or business you want to segment, here you have to deal with everyone. Everyone would be provided with the same treatment or services without discrimination. Payment usually comes from insurance and government companies because of the ability to pay services. The level of income is not accounted in this unlike the normal goods and services which makes it unique.

2. Two reasons making healthcare unique are:

1. Consumers are not having much choices in what type of healthcare they want or are receiving for their treatment.

2. They also don't have a option for how much they'll be paying, negotiation, where they are getting it from and not have choice to not purchase is when the thing comes about life and death.