Supply and Demand Hit: How COVID-19 Harmed Health Care | Beaufort County Now | The health care industry has taken a huge hit since the onset of coronavirus across the United States. | john locke foundation, supply and demand hit, coronavirus, covid-19, health care, june 25, 2020, cvd19

Coronavirus Disease 2019 (COVID-19)

Supply and Demand Hit: How COVID-19 Harmed Health Care

Publisher's note: The author of this post is Brenee Goforth for the John Locke Foundation.

    The health care industry has taken a huge hit since the onset of coronavirus across the United States. This week, JLF's Jordan Roberts used data from this spring and spring 2019 to determine just how much of a hit COVID-19 has started to take on hospitals throughout the country. Roberts writes:

  • COVID-19 stressed the health care sector disproportionately and hospitals especially. Hospitals treat most patients that contracted the disease, and thus there are fewer opportunities to access hospitals due to policies and protocols established to treat patients that have coronavirus. This produced shocking decreases in supply and demand for hospital-based health care.

    Jordan Roberts describes how the health care market has been hit from both sides. Roberts explains:

  • A supply shock is an unexpected event that changes the supply of a product, resulting in an unforeseen change in price. A demand shock is a sudden event that dramatically changes the demand for goods and services...
  • In the current case, the health care sector has experienced negative supply and demand shocks. The supply shock comes primarily from a combination of stay-at-home orders that force doctors' offices to close and a decrease in the quality of health care. In this context, decreased quality means that consumers may want to go to the hospital or doctor's office but choose not to because of the heightened risk of contracting the disease. But on the other hand, there has also been a demand shock. Millions are out of work, and the unemployed may be hoarding savings or choosing to forgo typical health care that they would consume under normal circumstances.

    Roberts hypothesizes that these market conditions will likely lead to increased hospital mergers. Roberts writes:

  • One of the lasting effects will be further consolidation among large hospitals systems. Health care has a merger and acquisition problem, which I have discussed previously (see HERE and HERE). As hospital revenue drops, smaller and less profitable hospitals may be acquired by larger, more profitable hospitals. The struggling hospitals see a takeover by a larger hospital chain with more resources as a way to achieve financial stability... Unfortunately, as hospitals consolidate, the market power of each hospital system grows, and so do the prices of health care at that hospital system.

    Read the full brief HERE. Read more research analysis from Jordan Roberts HERE.


HbAD0

Latest Op-Ed & Politics

Pot calling kettle black: Another example of the hypocrisy of the Left/Democrats
More and more school districts are making decisions not to return students to in-class instruction until early spring
Today, America's second Fake Impeachment of Donald J. Trump, just days before he leaves office, may speak more about those Impeaching the President than he who is indicted.
Former State Board of Elections Chairman Josh Howard says there could be dire consequences for future elections if the governor is allowed to appoint a judge to a newly created Wake County District Court seat.
Two banks that previously did business with President Donald Trump are cutting him off following the Jan. 6 riot in the U.S. Capitol.
Alan Jacobs’ new book, Breaking Bread with the Dead: A Reader’s Guide to a More Tranquil Mind, is a coaxing argument to read “old books that come from strange times.”
Hayden Ludwig writes for the Washington Free Beacon about a new method for left-of-center money men to bankroll their favorite political causes.

HbAD1

The Supreme Court struck a blow for good government Wednesday when it upheld Texas' restrictions on mail in ballots
Nearly a month after COVID-19 vaccines made it to North Carolina, the state has administered only a quarter of the doses it has on hand — one of the slowest roll-outs in the country.
Mark Zuckerberg of Facebook has now joined the ranks of those of us who have created moderated informational platforms that act as a hybrid publication.
The number of Republican lawmakers in the House who support impeaching President Donald Trump is growing, which could make the move just seven days before the president leaves office a bipartisan effort.
Christopher Bedford of the Federalist explores the political left’s attempt to turn last week’s disgusting Capitol attack for political gain.
COVID-19 and the ongoing fallout from the pandemic will likely dominate the 2021-22 session of the General Assembly.
Just a few months ago Democrats in Congress blocked a bill to condemn mob violence
Elite media fails to show the comparison between Capitol 1983 bombing and last week's demonstrations

HbAD2

North Carolina Republican Party Chairman Michael Whatley released the following statement in response to the impeachment vote in the House of Representatives
A Georgia man was arrested by the FBI in Washington D.C. this week after he was allegedly contemplating trying to assassinate House Speaker Nancy Pelosi (D-CA).
We will offer this allotment of three with more to come; some old, most new, but all quite informative, and, moreover, necessary to understanding that in North Carolina, there is a wiser path to govern ourselves and our People.
The Democrats may soon wish they did not play games with impeachment
In 2021, county boards of elections across North Carolina will conduct several important and required processes designed to keep the state’s voter rolls accurate and up to date.
A senior GOP aide said Tuesday that House Republicans are not whipping votes against impeachment.
Governor Roy Cooper has mobilized approximately 550 North Carolina National Guardsmen to assist with upcoming security needs in Washington, DC and North Carolina.
Does it ever get old? The never-ending wash, rinse, repeat cycle of liberals throwing out the race card every time they don’t like conservatives doing or not doing something, even when completely legal, normal and appropriate?

HbAD3

 
Back to Top