Health Care Production Theory Essay

Health care is a critical aspect of human life. The health care and slow growth in the supply of the same is a problem that requires redress. If not addressed, the problem can increase pressure and burnout to the present health care infrastructure. Grossman's model of health demand can be used to meet the rise in healthcare demand with the current level of physicians, which would adequately service the healthcare system in 2030. Based on the model, health is a sturdy inheritable investment good that depreciates over time. Health care investment is usually equipment purchase, while depreciation is the natural health deterioration over time (Jones, 2012). Health gets into the utility function incidentally as an asset that makes considerable time for non-market and market action. It also enters value function straight as the consumers derive desire. The Grossman model has a dynamic equations system usually cast in the form of the optimization function. The utility is optimized over gross investment in medical care consumption and time inputs in the gross investment utility. Vibrant optimization functions are