Nhs-Market Failure

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Topic Two: Market Failure The healthcare system in Britain is predominantly paid for by the Government, and has done now for a number of years, through taxes paid for by the public. In contract the United States, the health care system is part of a free-market economy. This means that when a member of the US public is in need of health care, they must pay for it themselves, with no government help. For example, Sloman (2007) gives a distinct definition to a free market economy, ‘An economy where all economic decisions are taken by individual households and firms with no government intervention’ If healthcare was to be funded completely through a free-market economy, a lot of individuals would say that it would be a relatively fair way…show more content…
Under a free-market, doctors are by contrary business people who are looking for a profit, and can use the consumer’s lack of knowledge of medicine, and sheer trust as they are a doctor, as a platform to over-charge buyers. Flower (2009) agrees that, ‘Medicine is a matter of high skill and enormous knowledge. So doctors, by necessity, act as sellers, and agents of other sellers (hospitals, labs, pharmaceutical companies). Buyers must depend on the judgment of sellers as to what is necessary, or even prudent.’ Many doctors in the US are giving rewards for selling more products and in contrast giving fewer bonuses by not selling as many products. Surely selling more drugs to patients will only give them more health problems. Within a command economy, health care is not a business, and the correct drugs assumed truthfully by the doctor will be given to the patient. The only money going through the healthcare market in the US is the money being paid for prescribed drugs by people who need treatment. Within a command economy everyone is paying a tax to the government. What people in the this command economy who aren’t using this treatment don’t realise is that their money is also going towards healthcare research which may find a cure for something they contract twenty years down the line. It benefits society as a whole due to it

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