Profit Seeking Appropriateness Flashcards
What is an income ?
your paycheck; the actual amount of money earned or coming in
What is profit ?
what you have left after you spend your paycheck; the difference between your total revenue and total expenses
What would a drug company’s income be ?
the sale of the drugs
What would a drug company’s profit be ?
the money leftover after paying employees, drug production, and other fees
what are the 2 “Differentness” of health care?
- Healthcare is essential to life
- “Health is a complex good with value that is often unknown to the consumer”
what does “information asymmetry” mean?
imbalance of knowledge between patients & healthcare providers
How do people exploit the information of asymmetry ?
those seeking profit can do so by exploiting the asymmetry of information regarding health services
What are the differentness of competition in healthcare ?
competition actually forces prices DOWN, but people believe provider competition can drive it UP
What are certificate of need programs (CON)?
state regulates overall hospital capacity and offerings of specific hospital services
What do certificate-of-need programs (CON) seek to combat?
Supply-induced demand
what is the effect of Supply-induced demand ?
effective in quality care/improved outcomes
why do we ask the question “is profit seeking appropriate?”
because healthcare is about improving the lives, so the motive to seek profit, the treatment and lack of knowledge towards the patient becomes weaponized
If a friend of yours were to say they don’t get why healthcare is different, how would you respond ?
the goal of healthcare is the pursuit of the patient’s health, access to care, and experience, so to prioritize money over that would malpractice
