Health Economics and Financing – Health System Example

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"Health Economics and Financing" is a brilliant example of a paper on the health system. Basic human needs comprise of food, shelter, and clothing and face the limited resources in the economy. However, the list of wants is endless. Health care is another elementary necessity that every individual must acquire so as to survive but it does face various challenges in its provision since there are scarce resource availability and difficulties ineffective allocation as every need to be met (Milstead, 2013). Due to this, the federal government does make hard choices in deriving policies that govern the provision of health services. Thus the issue of the care has reignited the debate to the Review of Prostate Cancer Drugs Provenge.

This is a disease that requires a high amount of financial capital for one to access the service. Hence the policymakers face difficult tasks to provide the care while maintaining the economic standards of the country with the limited resources available (Milstead, 2013). The evaluation process of which health care to provide to the public by the government needs a critical examination so that the entire population is taken care of. The policy health care decision-makers take into consideration the accessibility, efficient allocation of resources, and the utility that the care provides while evaluating the type of health facility to give to the public and those to be provided by the private sector.

Since prostate cancer and the drugs used are quite expensive if left to the private sector who are only determined to make profits, the public might suffer and may result in the loss of population. The care would thus be provided by the government so that the entire public, young, income earners and both the poor and the rich are taken care of since the cost are so exorbitant and thus the fed need to care of it either by subsidizing to make it to affordable rate to the citizens and satisfaction is also achieved (Milstead, 2013). However, in providing the drugs for prostate cancer to the public do constraint the resources as balancing the federal expenditure budget must be kept in such a way it does not affect the economy. But so long as the care is in dire need to the public, then the fed has no choice but to deliver the service at affordable rates since if left to the private sector, the citizens will suffer ( Milstead, 2013).

Thus the opportunity cost of the care is almost nil as it is like a basic need. Through provision by the fed quality will be maintained and provided to all so that every single person can access the service at cost-effective.                       Nevertheless, the cost-effective provision to experience a lot of challenges.

Differences in opinion between the political divides make it hard to pass such a bill hence derailing its implementation as politicians tend to oppose important issues at national levels so long as it is not their idea. The country also experiences challenges in economic issues as the actions of allocative efficiency are not easy given that resources are limited and scarce while human needs never end (Milstead, 2013).


Milstead, J. A. (2013). Health policy and politics

Milstead, J. A. (2008). Health policy and politics

The Economics and Finance of Health Care” (pp. 191–206)

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