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ASCON XII
Future Health Systems
Special session:
Health markets – their implications
for the poor




                                      1
Why markets may be bad for the
poor
    Markets can worsen distributive outcomes and hence

    produce or worsen health inequities
    Markets for goods and services that embody expert

    knowledge produce information asymmetry between
    providers and clients. This can make clients vulnerable to
    abuse of provider power and the poorer the client, the
    more vulnerable
    Health markets tend to be very segmented, with the poor

    facing particular challenges in terms of gaining access to
    affordable, competent care
    The poor are the most likely to get goods and services

    from unregulated markets, thereby getting the worst
    deal
    The poor often spend unnecessarily in these markets



                                                             2
How markets could help improve
access to health care for the poor
    Markets can make available mass produced lower cost,

    quality assured products (e.g. standard minor
    procedures, basic health care commodities)
    Markets can provide capital and ideas to drive innovation

    more effectively
    Market based services can respond more flexibly to

    specific mass market niches that the poor engage with
    Provided subsidies are well targeted or there is a third

    party payer, private provision can complement public
    services or fill service gaps




                                                            3
Important questions to ask about how a
health market affects the poor

    Does it reduce information asymmetry and enable

    patients to better assess whether the health services
    they are acquiring are appropriate to their condition?
    Does it align incentives better or worse with patient

    welfare?
    Does it relieve or exacerbate constraints on competence,

    finance, and management?
    Is there evidence that it results in better health-related

    outcomes?
    Does it provide benefits to the poor and/or does it

    support the creation of sustainable arrangements to
    meet the needs of the poor in the longer-term?




                                                                 4

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Health markets – their implications for the poor

  • 1. ASCON XII Future Health Systems Special session: Health markets – their implications for the poor 1
  • 2. Why markets may be bad for the poor Markets can worsen distributive outcomes and hence  produce or worsen health inequities Markets for goods and services that embody expert  knowledge produce information asymmetry between providers and clients. This can make clients vulnerable to abuse of provider power and the poorer the client, the more vulnerable Health markets tend to be very segmented, with the poor  facing particular challenges in terms of gaining access to affordable, competent care The poor are the most likely to get goods and services  from unregulated markets, thereby getting the worst deal The poor often spend unnecessarily in these markets  2
  • 3. How markets could help improve access to health care for the poor Markets can make available mass produced lower cost,  quality assured products (e.g. standard minor procedures, basic health care commodities) Markets can provide capital and ideas to drive innovation  more effectively Market based services can respond more flexibly to  specific mass market niches that the poor engage with Provided subsidies are well targeted or there is a third  party payer, private provision can complement public services or fill service gaps 3
  • 4. Important questions to ask about how a health market affects the poor Does it reduce information asymmetry and enable  patients to better assess whether the health services they are acquiring are appropriate to their condition? Does it align incentives better or worse with patient  welfare? Does it relieve or exacerbate constraints on competence,  finance, and management? Is there evidence that it results in better health-related  outcomes? Does it provide benefits to the poor and/or does it  support the creation of sustainable arrangements to meet the needs of the poor in the longer-term? 4