THE HIGH COST OF GETTING SICK
CAUSES OF MEDICAL COST INFLATION:
- AMA restriction on supply of doctors (i.e. leftward supply-curve shift) by a) closure of medical schools, b) restricted accreditation of medical schools and prohibition of proprietary (for-profit) schools, c) licensure of physicians
- Dramatic increases in demand for medical care have shited the demand curve for medical care rightward, increasing price