Ouch! I'm a retired grocery-store owner from Toronto who fell out of a tree while bird watching in Halifax, Nova Scotia (a Canadian province). The bill from the hospital for putting a cast on my broken arm is estimated to be $3,000 (Canadian). How was this price for medical care determined?

Question

Quizplus · Accepted Answer

In Canada, healthcare is largely publicly funded and delivered, with the government playing a significant role in healthcare financing and regulatory power. The government imposes payment limits on healthcare services to control healthcare costs. This power is known as monopsony power, where the government is the only purchaser of healthcare services in the market. In this scenario, the price for medical care was determined by the intersection of supply and demand, but with the government imposing payment limits through its monopsonist power.

Ouch! I'm a Retired Grocery-Store Owner from Toronto Who Fell