Economics of Healthcare: Policy change to increase the supply side of the market
Focus on a proposed or existing Federal Policy Change that would emphasize and increase in the supply side of the health care market
Background: Each year, the government spends several hundred billion dollars subsidizing demand and helping people purchase medical services. Very little is spent encouraging additional supply. However, without additional supply, demand subsidies merely lead to higher prices and a reallocation of healthcare services among consumers. Thus, the primary beneficiaries of the demand-side subsidies are the health care suppliers, who receive the higher prices for their services. Supply-side programs would focus more on the training of health care providers. For example, they might provide more aid for the growth and development of medical schools. Aid to low-income students qualified to attend medical and nursing schools might also be expanded. In contrast with demand subsidies, programs that expand the supply of medical personnel would make it easier to control future costs (Gwartney, Stroup, Sobel, & Macpherson, 2018,).
Gwartney, J.D., Stroup, R.L., Sobel, R.S., & Macpherson, D.A. (2018). Economics: Private and Public Choice (16th ed.). Boston, MA: Cengage Learning.
*The Research Paper should include an introduction, numbered sections, a conclusion, and a reference list.
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