User Charges for Health Care: A Review of the Underlying Theory and Assumptions

Abstract

Efficiency and equity have been the most controversial concerns in the health care financial system for a very long time, specifically in most low-income countries. Since there are informational and organisational conflicts, markets that provide health services might not be possible and may not be able to address the precautionary measures and the necessary short- and long-term support. It can be inferred that health care design should consider several areas such as the assertion that the price system offers theoretical explanations for user fees in the market's health industry, the efficient use of market mechanisms, the importance of medical assistance's price elasticity of demand in the execution of user fees in developing nations, and the correlation between the funding of medical support and the economic indicators.

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