Healthcare Is Inherently Different From Other Goods And Services
1082 WordsJun 22, 20165 Pages
Healthcare is inherently different from other goods and services, which has resulted in an inaccurate definition of the field. Healthcare is inherently different from the common sale of goods and services. Healthcare incorporates the sale of both goods and services, and is largely differentiated by the presence of different components. It is a delicate and complex field given the emphasis on quality and positive outcomes, which may be a challenge to achieve.
In addition, outcomes in healthcare are usually marked by uncertainty with large components of the industry being dominated by not for profit providers and payments are sponsored by the government and private insurers, which they control a high level of functions in healthcare. They…show more content… Question 2
Explain the difficulty of measuring health care inflation and why quality and quantity can be confused.
Measurements through extraction of appropriate and in-depth statistics in healthcare is relatively difficult given that healthcare is an extensive field that incorporates a variety of elements. The quality as well as quantity of information is directly influence by the complex integration of various elements and components of healthcare services. Healthcare services incorporate a significant number of elements and components, which brings forth issues of quality and quantity ( Phelps, 2013). For example, the growth in medical prices continues to rise annually, its rate of growth is growing rapidly, in which service changes.
The Bureau of Labor Statistics (BLS) generates the Consumer Price Index (CP1) NAD its component measures. In order to get an overall CPI , they select a good deal of goods and services that shows a representation of a pattern of purchases for urban consumers, including sheltering, housing, transportation and medical care, on so on. As for each of the categories a particular set of commodities and service is chosen. In this case, all facets of health care can increase, such as change in cost is difficult to measure because of services that are provided.