Demand For Health Care Services

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INTRODUCTION SECTION -1 Demand for health care services and physicians in U.S is the quantity for which the society is willing to pay the minimum price in order to avail their services in future. The demand of the physicians depends on several factors such as needs of the population, some of the economic constraints of the people such as their income level and prices they are facing, other technological constraints related to the feasibility of what the consumers demand and last but not the least, the cultural considerations. The final demand of health care physicians depends on the interactions of demand and supply conditions prevailing in the market of services. According to the report, there will be less agreement on the future demand…show more content…
In order to accommodate this growth, there were expansions in positions by Graduate Medical Education (GME). Other factors which will determine the future demand and supply of the physicians in U.S are the aging of the population in U.S and that of physician workforce. It has been projected that due to population growth, aging and similar other factors, the demand of the physicians will outpace the supply of the physicians by 2025. Hence, the recommendations to face the future shortages are to improve the efficiency of the entire healthcare system, the way services are being delivered should also be considered, and how to make better use of the present physicians are most important. (AAMC, 2007) As we can see in the diagram, it has been projected that the supply of physicians would be less than the demand of the physicians. Therefore, by 2025, there will be around 124,000 physicians’ shortage in the market. If we alter the assumptions underlying the projections of physicians demand and supply in the market, such as increase in the number of hours worked by the old physicians, utilization rate of each physician and rise in the accommodation capacity of GME and other productive capacity of the healthcare infrastructure, then there might be increase in shortage by 35,000 more than the shortage in baseline. (mgma, 2014). 1(b) - Now looking at the price elasticity of demand situation in the physicians market, the slope of the demand
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