How Supply, Demand and New Policies Affect the Costs of Medical Supplies, Healthcare

Just like other markets, the costs of medical supplies, healthcare services and insurance premiums are affected by supply and demand. In general, when there is high demand for a product or service and supplies are limited, costs rise. That being said, there are other factors responsible for influencing the costs associated with healthcare: These factors include tax increases and additional regulations placed on medical supplies and/or healthcare services.

The Journal of the American Medical Association (JAMA) Addresses Health Care Costs

From 2000 to 2011 there was a rapid increase in the costs associated with medical supplies and health care. These continuous increases …read more