THE DISTINCTIVE ECONOMIC CHARACTERISTICS OF HEALTH SERVICES.

The article focuses on the major distinctive characteristics of medical services that are medical care as a need, uneven and unpredictable incidence of illness, lack of knowledge, non-profit motive, medical service and education as joint products, and external benefits. In addition to the distinctive characteristics of the services and the unusual features of organization in the medical care industry; the personal experience of the economist constitutes a further problem in his dealings with the health field. Almost every economist who has expressed views on medical care, whether as a result of systematic study, by way of incidental comment, or in illustration of a general principle, has had some exposure to doctors or hospitals, personally or through his family or friends. The reaction is either favorable or unfavorable; it is seldom neutral. Like most citizens the economist also tends to be impressed by technical advances in medicine and to accept at face value the claims of modern medicine to diagnose and treat illness and even to prevent it. He views lack of care as a deprivation, rather than possibly as a form of "conservative" treatment, helping nature along.