ABSTRACT
Hospital resources have to come from external sources, which will allow the hospital to live and develop. The cost for these resources is raised from various sources, but the sustainable source for public hospitals is the government itself, through the budget. Consumer rates are related to the elasticity of demand. If the demand is elastic, tariff changes would result in large changes in the consumer demand. Finance-based health insurance is complex because the incentives due to insurance occur on both the supply and demand sides. The insurance business generally issues three types of mechanisms to prevent moral catastrophes of the part of patients and hospitals: deductible, copayments, and coverage limits. The deductible system asks patients to pay for their own health care up to a limit. The copayment mechanism asks the patients to pay a certain percentage of the total cost. The coverage limit, asks the patient to pay in advance up to a maximum limit.
