Demand for Health CareOctober 19, 2006.ppt

Demand for Health CareOctober 19, 2006 Medical Care = M (HS, DC, ES, PF) HS: Patient Health Status DC: Demographic Characteristics ES: Economic Status PF: Physician Factors Patient factors: Consumers must decide among the available alternatives designed to satisfy their desires for health care. Weigh benefits against costs of a good or service. Effective demand: Consumer must have the money to pay for alternative goods or services. Consumer must be able to rank alternative goods and services. Health status: The acute care model of medical treatment follows an expected pattern – a patient develops a medical condition (illness, injury, pregnancy, etc.), seeks out a physician, seeks treatment, and either dies or recovers. Health status: Chronic illness, defined as a condition where a complete cure is not possible, has become a major factor in health care spending. The condition does not go away. Some conditions are more likely as we age (Parkinson’s disease, CHD, Alzheimer’s disease, arthritis, diabetes, asthma, and emphysema are growing problems among the aged.) Not all chronic conditions are age related: e.g. HIV infections as well as other sexually transmitted diseases such as Chlamydia; and respiratory diseases such as tuberculosis and pneumonia, are increasingly resistant to traditional methods of treatment. Demographic characteristics:  A growing population An ageing population Sex – male or female (especially females during child bearing years) Men suffer more frequent health losses due to life style choices such as drinking, smoking and over eating. As more women enter the labor force and pattern themselves after men, these differences are narrowing. Economic standing Income, Education and Expenditures on Medical Care are positively correlated. Education is associated with higher levels of income. Education makes one a more informed consumer. Studies show that health status and income are closely related. The same holds for Education and heal