Module Components

• Overview
• Assignments

Topics

• The Imperfect Health Care Market
• Market Failure, Government Regulation, and Public Policy
• Public Health Insurance - Medicare
• Public Health Insurance - Medicaid

NDNP 803 - Executive Leadership and Healthcare Economics

Module 6: Role of the Government in Health and Medical Care

Market Failure, Government Regulation, and Public Policy

Simply put, when markets fail, the government often “steps in” to remedy the market failure rather than letting the market forces (of supply and demand, utility, and elasticity) take their natural course. This is where public policy comes into play. It is a widely accepted premise that health care is a special case of market failure and that government intervention is necessary. Often times, the question becomes – should the government step in?