Why the provision of healthcare services is different from other goods and services

Healthcare services are different from other goods and services because of derived demand. This is what makes the provision of healthcare services different because it is demanded as a means to achieve a larger stock. In this case, it means that most consumers demand healthcare so that they can achieve a large pool of health capital.

There is a big difference because when consumers demand healthcare services, they allocate resources that will enable them to produce and consume health. Every individual person can therefore be regarded as both a producer and consumer of health.

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This therefore makes it different from other goods and services because they ultimately have predetermined producers and consumers. It should occur that the same people who produce health as a good and service end up consuming it in one way or the other (Wise 43).

Health can be viewed as capital because it will ultimately degrade in the absence of any meaningful investments that are always necessary for . In this case, health can be viewed as a consumption good and investment good.

Taken literally, it should be known that we can invest in health in various ways and end up consuming it as we are bound to be sick. This means that the consumption of health as a good can end up yielding some utility and direct satisfaction.

Satisfaction to consumers of healthcare services can be indirectly achieved by increasing and enhancing productivity which can not be seen in other goods and services. This means that any increased productivity will be characterized by few sick days from a consumer point of view.

All in all, the provision of healthcare services is different from other goods and services that are examined in economics because of two perspectives and approaches that are supposed to be evaluated. Investments in healthcare services can end up being costly because consumers should be able to trade on time and different resources that are always devoted to health.

As much as consumers might have other goals to achieve and accomplish, they are supposed to forego this for health which has not been seen in any other good or service that is just consumed (Fuchs 78). For instance, health consumers are supposed to exercise every now and then at the gym even if that was not their initial priority.

In this case, it should be known that these are factors that can be used to determine the optimal level of health that is always demanded by different consumers. Healthcare provision is different from other goods and services that are explored in economics because, as a product, it is ill-defined.

There are different, diverse and distinct stakeholders that are involved in health as a product which makes its provision unique and different. Its provision is complex because the outcome of care is always uncertain. This is because you can not be able to predict the outcome of consuming healthcare unlike other goods and services where utility can be evaluated.

When compared to other goods and services, the healthcare sector is dominated by a lot of which means that they might not pay attention to other economic aspects. Most payments in the healthcare sector are made by third parties that can be either private insurers or government institutions.

As much as these factors can be found in other industries, they are all present in the healthcare sector. This means that the healthcare sector and industry has been made unique by an interaction of all these factors. All this withstanding, various stakeholders and players in the industry respond to incentives like consumers in other industries (Wise 96).

The healthcare industry is always regulated because of its sensitivity on peoples lives. This means that healthcare as a product is important which therefore requires proper safety, effectiveness and efficiency for different consumers.

Governments should know that healthcare is different from other goods because an individual might be unable to afford a car but should it occur that he is unable to access healthcare, he or she will die.

Comparison with international health care systems

When compared with other healthcare systems, the Canadian system does not have many problems but others have been rather exaggerated. All this withstanding, the Canadian system has been characterized by many waiting hours that have made people to cross over to the United States for treatment.

People wait for long months for diagnostic tests to be done and this is an issue that the countrys industry players need to look at. As much as this is a fact, there are people who have crossed over to be treated in the country which implies that these inefficiencies might be scanted.

In this case, it should be known that as much as different stakeholders might argue that the countrys problems are inevitable; this is that have been seen in other neighboring countries. There are countries that have had successful systems than Canada most notably France and Sweden but they thrive by imitating a free market.

This is where policy analysts and opinion leaders have differed in Canada because there is an argument that if a free market delivers results, then it should provide healthcare directly like it does for cars and other products (Kraus 73). Canada has been reforming its healthcare system as time goes by to match international standards based on emerging technologies.

70% of the countrys healthcare spending is always financed by the government which is not a good development because private players should be actively engaged and involved (Kraus 58). Disparities in spending when compared with other good health care systems around the world has always led to heated debates among politicians which affects efficiency of the system as a whole.

Health outcomes are superior in Canada among patients when compared with other developed countries like the US and this is a good development. Life expectancy is longer in Canada and this means that there should be some underlying factors behind this aspect in relation to its healthcare system.

Canada has been ranked well when it comes to good achievements in the level of health but there is need for improvement as recommended by international standards. The country is exposed to when it comes to heart attacks because it relies on a conservative approach to the opening of arteries.

Most end services in Canada are delivered by the private sector which is in compete contrast to the fact that 70% of funding comes from the government (Kraus 123). This implies that there are some disparities and inconsistencies as far as public and private partnerships are concerned.

Healthcare costs in Canada have been rising faster than inflation which requires some review and evaluation for long term sustainability. The country should also strive to enhance and increase doctors per capita to be in tandem with internationally recommended standards.


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