The Growing Demand for Medical Care

Abstract

Recent years have witnessed a sharp upsurge of interest in the economics of health.On the one hand, physicians, hospital administrators, public health officials, and other health experts are becoming increasingly aware of the need to carry out informed systematic analyses of the problems of organizing, financing, and distributing health services.On the other hand, economists are discovering the tremendous economic importance and challenge of health care and are beginning to apply to this field the analytical tools and concepts that have proved useful in a large variety of other situations.One such concept is that of demand, and this paper attempts to analyze the growing demand for medical care.The application of economics to medical care is not a simple matter.It is desirable, therefore, to define terms before the analysis is begun.Demand, to the economists, is a technical term with a fairly precise meaning.When an economist talks about the demand for medical care, or any other good or service, he is talking about a willingness and ability to pay.This term should not be confused with "need" or "want" or "desire," although these words are frequently used interchangeably