PROBABLE ECONOMIC EFFECTS ON HEALTH CARE SERVICES

Friedman's (1992) position, however, may be nigh related to the economical concept of moral hazard. Friedman first communicate this issue in 1945 in Income from independent passkey practice, which was co-authored by Simon Kuznets. A later essay on the issue was pen by Friedman in the 1970s, and was included in a digest of several of his essays along with several essays by Psychiatrist doubting Thomas Szasz, the purpose of which was to support the legalization of drugs. The compilation was published by the Drug Policy Institute in 1992.

Considering the Arguments For and Against the Elimination of clinical Licensure

The licensing of physicians was implemented initially in the United States as a quality improvement initiative. The heading was to improve the quality of the sidetrack of the nation's medical schools. The mechanism written into law to attain this objective was to delegate licensing authority to the dust of professional physicians, as the body of professional physicians was represented by the American Medical friendship (AMA). The AMA, immediately upon gaining this authority, ref apply to certify many medical schools, which meant that the graduates of those medical schools could non sit for the medical license examinations. Soon thereafter, the AMA began to coerce medical schools (by employing the threat of n

One of the earlyish agate lines against physician licensure laws was that such laws prevented individuals from seeking the go of such professional providers as nurse practitioners directly; causing individuals instead to go through physicians for all health cargon serve. This argument held that health vexation prices could be degradeed through an end to this restriction. Since this argument was first offered, most states have licensed nurse practitioners are primary health care providers, and the price for health care obtained directly through nurse practitioners has proved to be lower than that obtained through physicians.

Friedman's argument, however, is that all clinical licensure laws should be abolished, which would enable anyone, dependent or not to offer health care services in an surround wherein it would be the righteousness of the individual seeking health care to evaluate the quality of the service universe offered. According to this line of reasoning, with both the economic and the health risks fictional by the consumer, unqualified and ineffective health care providers in brief would be driven out of the health care services industry by market mechanisms. This argument is grounded in the economic concept of moral hazard.

Strong arguments exist on from each one side of the issue of clinical licensure. Certainly, health providers are in a conflict of interest situation in an environment characterized by clinical licensure, as provider self-interests cannot help however influence the decisions of licensing authorities. Conversely, while the argument that consumers should assume greater responsibility for their own health is valid, the sad fact is that a king-sized proportion of consumers would fall prey to quacks and other frauds in a health care services environment that was completely stark of clinical licensure.

While the approach of Arnott and Stiglitz (1986) may be used to illustrate the ways in which diverse factors and individual behaviors may affect societal w
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