The Analysis of Market Failure in the U.K and the U.S. Health Care System

In: Business and Management

Submitted By HughMei
Words 3258
Pages 14
The Analysis of Market Failure in the U.K and the U.S. Health Care System

Contents

Executive Summary 3

1. Introduction 3

2. Findings 3 2.1 The health care system in the U.S. 3 2.1.1 Adverse selection 4 2.1.2 Moral hazard 4 2.1.3 Market power (the pharmaceutical firm) 5 2.1.4 The Medicare-Medicaid 7 2.1.5 Suggestions and solsolutions...................................................8 2.2 The health care system (NHS) in the UK 9 2.2.1 Asymmetric informtion 9 2.2.2 Incentive problems 9 2.2.3 Market power of the health authority 10 2.24 Suggestions and solutions....................................................... 11

3. Conclusion 12

Reference List 12

Executive summary
The main purpose of this report is to assess two approaches to health care, and briefly discuss market failures and the induced inefficiencies in them with the comprehension of applied microeconomics. This report will try to link the facts in health care provision with the essence of each health care system. Several practical proposals will be constructed.
1. Introduction
Health care, as one of the most complicated public services, is an essential issue both in economic and social areas. The provision of health care is a matter of a whole nation’s welfare quality. In the contemporary world, there are two dominate but distinguishable health care systems. One is publicly provided, an example of which is the UK. The other one is privately provided, such as in the US. Both health care systems have delivered great outcomes to residents in the last fifty years. However, they are facing severe challenges which have never been so troublesome. This report is aimed to analyze and compare the two different health care systems.
2. Findings
2.1 The health care system in the…...

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