the demand for medical service
many people have the misconception that economic theory has little relevance to the demand for medical care because economic factors are not important when an individual needs urgent medical attention. Recall Joe in Chapter 1. who awoke one night with a pain in his chest and realized he was having a heart attack. It is highly that he and his wife considered the price of medical care as Joe was rushed to the hospital . However. most visits to a physician's office and the majority of visits to a hospital emergency room are not of a life-threatening nature . Thus,for many medical care transactions,there is sufficient time to make conscious choices , and price often plays an important role in the determination of choices.Results of a recent survey of types of health care providers and insurers substantiate the critical role price plays in determining the demand for medical care (Winslow,1994). According to the survey. price was ranked as more important than patient satisfaction or access to doctors . among other factors . in determining the economic success to health care providers.