Economics theory provides rules for dealing with competition, making sense of costs, & understanding the real value of goods & services. Economics in health care is an derivative of society’s health influenced by the accessibility, affordability, quality, availability, & utilization of health amenities.

Demand for health care services determines the prevalence & incidence of disease presence within the population. Environmental crisis has polluted air, land, & water, & triggered increase in rate of infectious diseases, via vector communication. HIV has been prime focus for need for medical care. Life-style diseases, genetically predisposed constitutional diseases, & accidents has estimated high demand for medical care. However, these demands are elastic to price distribution & income levels of individuals. Individuals buy those health care services, which will give maximum satisfaction from their limited housekeeping, or income allowance. Opportunity costs for medical care compensates with other basic needs of life, postpone the treatments, or finding alternative resources.

Health care providers of government sectors restraint from providing tertiary medical care, because of lack of monetary support, & large scale of population count. Education, family planning, poverty, nutritional status (especially in children & pregnant females), Immunization programmmes, sanitation & environmental hygiene has accounted primary concern for government authorities. The private stake-holders has played crucial role in introducing high-technology & super-specialty treatments, & assured quality care with early diagnosis & increase in quality life, but probably with price inflation. Managed care organization & medical insurance policy has given relief to certain extent, however with high premium rate, & exclusive terms & conditions of the contract, has failed to cover large scale of population.

Market economic reports, increase in GDP in both developed & developing countries consequentially escalates the medical care cost. Increasing competition among private stake-holders in health care industry focus on profitability, & also promoted medical tourism generating high revenue source, which has adversely affected ethical standards in native countries.