Cover: Allocation of Public Sector Resources in Medical Care : An Economist Looks at Health Planning.

Allocation of Public Sector Resources in Medical Care : An Economist Looks at Health Planning.

Published 1970

by Joseph P. Newhouse

Purchase Print Copy

 Format Price
Add to Cart Paperback12 pages $20.00

Discusses the problem of determining the appropriate allocation of resources within health; such is the usual problem of health planning. The paper points out why the market may not lead to a theoretical optimum; that is, why health planning may be necessary. Health planning, as it is often conceived, attempts to determine the best allocation of medical resources, where best is defined as that allocation which is most efficacious for health. This approach makes two errors: first, the effect of nonmedical inputs on health is ignored; second, the effect of medical inputs on things the consumer desires other than health status is ignored. 12 pp. Ref.

This report is part of the RAND paper series. The paper was a product of RAND from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.