Health Care > DISCUSSION POST > PBHE 315 Forum week 2 Discussion Assignment (graded) (All)
PBHE 315 Forum week 2 Please answer the following questions regarding Health Care Costs and Product Differentiation Using supply and demand analysis, explain some of the factors that may have ... led to rising healthcare costs in the United States from 1960 to the present day. In your opinion, which factor has had the greatest impact? When dealing with supply and demand analysis in the healthcare world you must consider what is supply and what is demand. Supply is how much the market can offer or what is available to the patient. Demand will refer to the want and need of product by patients. While we hoped this relationship would be symbolic and have balance and equality, it does not. Supply and demand analysis in the healthcare world is money driven and is only causing the price of healthcare to continual rise. One of the main factors in this is that we pay our doctors, hospitals and other medical providers for what they can do, regardless if it is efficient or not. Most insurances pay a fee per service, doctors see this as a money-making opportunity. The more test and procedures they can perform the more the insurance is going to pay out (Seven Factors) Another factor is aging, we are all getting older and with age comes more medical problems. The environment we live in and the lifestyle we have led can lead to diseases like obesity or asthma. In a population of the elderly, there will be a demand for more medication. Two-thirds of the adults living in the US are overweight, suffering from heart disease, or have asthma (Seven Factors). Discuss the two ways that product differentiation affects the demand for the product. Give an original example of product differentiation. Product differentiation, without a doubt, has effects on demand for an individual product. It occurs to distinguish a product from the rest with the aim of making it more attractive to consumers. It reduces competition that comes directly by making categorization difficult as well as drawing a fewer comparison. This affects the demand for products. Buyers can also perceive a difference amongst available products. For example, a manufacture who makes hospital or home healthcare beds may come up with a bed with a unique design as compared to the rest. The buyer’s attention will thereby be attracted by this and desire to buy more of such beds (Product Differentiation). References: Product Differentiation and the Demand Curve. (2015, August 11). Retrieved from http://www.economicsdiscussion.net/monopolistic-competition/product-differentiation-and-the- demand-curve/5384 Seven Factors Driving Up Your Health Care Costs. (2012, October 24). Retrieved from https://www.pbs.org/newshour/health/seven-factors-driving-your-health-care-costs This study source was downloaded by 100000849840424 from CourseHero.com on 10-01-2022 09:58:30 GMT -05:00 https://www.coursehero.com/file/41792838/Forum-week-2docx/ [Show More]
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