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Healthcare, Instability Risk and Cost Increases

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  • David Mayston

Abstract

In this paper we examine conditions under which instability risk and sustained labour cost increases can arise in a healthcare system that seeks to combine public sector healthcare provision that is free at the point of delivery with the availability of elective private healthcare at a positive user price. A key role is played by potential labour market shortages for public sector providers in impacting on their quality of healthcare, and by the density function of consumers’ net income to finance alternative private healthcare. Variables and parameters which influence the tipping point between stable and unstable outcomes can then be identified. The extent to which macro-economic increases in the rate of economic growth in the wider economy can overcome potential difficulties will also be examined.

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  • David Mayston, 2025. "Healthcare, Instability Risk and Cost Increases," Discussion Papers 25/01, Department of Economics, University of York.
    • Handle: RePEc:yor:yorken:25/01
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    References listed on IDEAS

    as
    1. Siciliani, Luigi, 2006. "A dynamic model of supply of elective surgery in the presence of waiting times and waiting lists," Journal of Health Economics, Elsevier, vol. 25(5), pages 891-907, September.
    2. Propper, Carol, 2000. "The demand for private health care in the UK," Journal of Health Economics, Elsevier, vol. 19(6), pages 855-876, November.
    3. Lindsay, Cotton M & Feigenbaum, Bernard, 1984. "Rationing by Waiting Lists," American Economic Review, American Economic Association, vol. 74(3), pages 404-417, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Healthcare Labour Market; Instability; Cost Increases; Public Healthcare; Private Healthcare.;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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