Concepts that define financing health care including risk, demand, and Essay

Concepts that define financing health care including risk, demand, and elasticity - Essay Example The whole mechanism in the health sector is a cost share sort of scheme. The consumers who are the patients in this case give the lowest contribution in most government based health centers universally. Conversely, there are a number of risks observed by the health centers and also the patients. One possible financial risk suffered by medical institution is the likelihood of drugs lacking consumption and they end up expiring while on storage if they appear to be expensive to the patients. On the other hand, the patients risk death if they fail to purchase certain drugs or fail to receive certain treatments due to their financial hiccups. An impact of financial risk is severe to the consumers or rather patients in the health sector. Another factor that defines how to finance the health care sector is the demand of the treatments and also the drugs. Demand of services and goods like any other sector of an economy is affected by both the price and quantity of the goods or services among other factors. While financing the health sector, the main factor affecting demand is the necessity of the drug or treatment by the patients followed by the price. This trend in the health sector is less likely to be observed in other markets. Patients will demand for a particular drug or treatment depending on whether it is necessary or not and in most cases the chronic diseases bring the highest demand in their treatment and purchase of their drugs. For instance, diseases like asthma or cancer tend to show high demand for their treatment. Elasticity of a product or a service portrays the responsiveness of either of the two in relation to changes in their prices. In most cases the elasticity is usually negative or less than whereby minimal change in price greatly affects the quantity of product or availability of the service in demand. Free checkups by