Essay On Healthcare Price Elasticity

Healthcare price elasticity can be defined as the amount of product and/or services that are needed or need (the demand for such supplies) to be produced in order to properly vendors. There is typically 3 main factors that may could affect the demand of elasticity: availability, income (the amount of money that can and cannot be spent), and time. Prescription drugs would be an increase in price elasticity in healthcare, as well as any price adjustment in healthcare and/or new technology. A decrease in healthcare elasticity would be considered as insurance plans and how benefits are offered with coinsurance and deductible, plus the amount of premiums one might have to pay. One other example that I would consider a decrease in elasticity would be the cost difference between seeing a Doctor vs. a Physician Assistant. The doctor has …show more content…
One of the major forces is technology, technology these days has it demands, advanced technology is becoming more and more common, is changes so rapidly that organizations are spending so much money buying new products and within months or years there is new and better technology. Another factor in the consumers preferences., of course the consumers wants the best, so they’re going to find the physician within an organization that has the most up to date technology, leaving the organizations competing against each other.
Overall Price elasticity in healthcare is affected in all aspects, whether that is a healthcare insurance company, healthcare facility, pharmacy, home healthcare to an individual person. It is not uncommon for any to see the demand for services change in healthcare so drastically this days. There is so many changes in healthcare that the elasticity will have increases and decreased other sources that will affect this as well is payer sources, government regulations, reimbursement rates, increase in population, income,