Examine the importance and relevance of health economics and how it relates to an individuals health.
Providers act as patients agent and act in patients best interest. Providers may have a financial incentive to act or refrain from acting in a certain way due to insurance arrangements or the lack of insurance. Supplier-induced demand is the provider version of moral hazard. Providers create a demand beyond the amount the well-informed consumer would have chosen. How do we create an alignment of incentives that creates the best possible outcomes for the provider supplier and the patient? (150 words) 2. Examine the importance and relevance of health economics and how it relates to an individuals health.