Answer to Question #96862 in Economics of Enterprise for shiro

Question

Evaluate the possible disadvantages of a free market approach to providing
health care.

Answer 1

With the transition of health care to the market, it is difficult for a service consumer to make a rational choice. Since health services are individual and often one-time. 

From the point of view of sellers of health products, it is impossible to plan activities, since the number of services sold does not depend on objective factors. Also, it is not possible to pricing medical services according to the laws of the market, since often market pricing mechanisms do not work.

Since healthcare is socially significant, and consumers of these services are not always able to pay for them, it is clear that the state plays a role as a guarantor of social security for citizens, this industry cannot be completely transferred to the market sphere.