Pros And Cons Of Privatized Health Care

Term Paper: Pros and Cons of Privatized Health Care

Kathmandu University School of Management (KUSOM)

BBA 1st SEMESTER, YEAR 1

December 27, 2016

Submitted To: Submitted By:

Mrs. Binayak Chhetri Rusal Tuladhar 167116 'A'

Acknowledgement

I would like to express my sincere gratitude to Mr. Binayak Chhetri, Faculty of KUSOM, for giving me this term paper as a part of my academic course. It helped me increase my knowledge and analytical skills.

I would also like to thank Kathmandu University School of Management (KUSOM) for providing me with the platform and resources for conducting the research.

Health care is delivered by health professionals those are chiropractic, physicians, physician associates, dentistry and more. It includes the work done in providing primary care, secondary care, and tertiary care, as well as in public health. Access to health care varies across countries, groups, and individuals, largely influenced by social and economic conditions as well as the health policies in place. Countries and jurisdictions have different policies and plans in relation to the personal and population-based health care goals within their societies. In some countries and jurisdictions, health care planning is provided by both public and private sectors. We will be talking about the privatization of Health Care and its impact on the economy.

Health care and

Expensive: Privatized health care is expensive in nature. Poor people cannot afford it very easily and do not have a option expect to select public Health care which provide services in cheap. People with low income will have greater burden of medical fees than those with high income. Also, people with high income usually have medical insurance covered by their employing company. But, people with low income usually don’t have a medical insurance covered by their employers.

2. Health Care is a Merit Good / Health care has positive externalities: in a country with many privatized hospitals, the consumption or usage of medical service is lower than the optimum consumption. So medical market fails due to under-consumption of medical services. So governments should intervene and support the health care. Also, many people know that health care creates some positive externalities. A good medical system can contribute to a successful economy. An economy will be improved by people being treated quickly/efficiently which will help the improvement of labor productivity. In free-market system, this positive externality is ignored and therefore the health care market