Rationing as a Response to Supply Side Constraints

| January 2010 | Type: |

The previous two research notes in this series highlighted the nearly unlimited demand for healthcare in South Africa, as well as the very limited supply thereof. In this note we consider various responses to the supply constraint of limited resources and examine the issue of rationing within the context of the proposed NHI. As is the case for nearly all other industries, in the health sector the fundamental question of economics also has to be solved: how can the scarce resources be allocated in the most efficient and equitable way?