Question

How can we best determine people’s true valuation of health services and have we reached a point of diminishing marginal utility in the use of health resources in the US?

Answer 1

Explanation:

In Us the health care services though have witnessed an increasing trend but the care received individually has not been of great value to the population of US. It can be determined by the fact that despite of growth and increase in medical services , the services are offered at high prices which cannot be afforded by the middle or low class families in US. Due to which the death tolls have remained unchanged or increased
This increased expenditure in healthcare in US has not created better health care outcomes but inturn reduced the quality and efficiency of services decreasing the value of health care received by an individual member in a house.

It can be best determined by the rankings of US in the terms of health care utility and satisfaction
In 2013 , Us expenditure in health care services was at peak than the rest of the countries but still did not ranked well in terms of individual value and quality services.
US was put under thirty ninth rank for mortality rate by WHO.

The diminishing, marginal utility is basically a concept which states that when the supply of a commodity increases , the marginal utility will reduce due to increase in its available supply.
Therefore by that explanation we can infer that Yes the health care services in US have reached to the point of diminishing marginal utility.

As from the past time , the spending patterns and volume of spending in United States has witnessed an increasing trend, more than the other industrialized countries. Its growth in terms of GDP has also increased as the amount spent on the health care services from 2017 as reported was over about 17% of the national GDP.

But Inspite of this increased amount of spending on account of health care services still the people of US has not yet received quality health care results and outcomes.
And research has even reflected that the helath care in US , overall has seem a declining trend and the situation seems to have worsened as concluded from the fact that as per the recent fortunecreport US has been placed in list as so close to the bottom.
Thus helath services seem to have declined by a large amount irrespective of the increase in spendings.
Although the country has seen a considerable amount of Expenditures in healthcare , the country has not been ranked well as per the quality care indicators and has been viewed as average compared to other countries.

Thus these inefficient outcomes and bad results has made US to be called as reached to the point of diminishing marginal utility where due to the increase in supply of medical services , the utility (with respect to quality and satisfaction) associated has declined. As US health care ranking explain clearly that US might not be able to receive enough , value per dollar spend on the health of US population.

Marginal utility thus decreases because :
There is a very little improvement or efficiency generated by every unit of successive medical services or care, than that of the previous unit

And increase in spending in health care results in generating considerably smaller utility.

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