Demand and Supply in Healthcare Delivery

Demand and Supply in Healthcare Delivery

Supply and Demand are two basic economic terms that work in industrial and institutional places. Like industrial supply and demand, the healthcare organizations also consist of supply and demand in a large and complex division that become impossible for any individual or a single organization that can comprehend all of the details of its operations.

Furthermore, the healthcare supply thread contains multiple independent agents such; as hospitals, insurance companies, regulatory agencies, employers and doctors whose economic structures and goals differ and in most cases are in conflict with each other. According to Uzsoy Reha (2005) National Academy of Science, Demand and supply for services are uncertain in diverse ways, making it complex to equal demand to supply.

This duty is intricate since demand for services is determined by both financial considerations and available technology, such as; whether or not some treatments would be covered with insurance.  Financial considerations made by the healthcare organization determine the supply and demand of services accessible to the institution. As if not enough, technological support available or needed in the organization also dictates supply and demand for the organization.

Today, demand for healthcare services such as insurance and financial supplies make healthcare unaffordable. Considering the many insurance plans and demands in health care, surely healthcare services become more expensive than common citizens can afford. Block J. Dale (2006) the healthcare delivery system is struggling with the growing demand for healthcare services, which is not, adequate for them. However, in case the healthcare system improves on cost efficiencies through better management, the healthcare plans would be affordable. Additionally if, the demand is made to equal the supply and the gap between them is closed, healthcare services will be affordable to all citizens.


Block J. Dale (2006): Healthcare outcomes management: strategies for planning and evaluation retrieved on 7th Nov 2012 from
Uzsoy Reha (2005): Supply-chain management and health care delivery: Pursuing a system-level understanding (National assembly of science)retrieved on 7th Nov 2012 from

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