Forms of state intervention in the health sector

Any economic activity is rarely free from state intervention. State interventions mainly cover the following aspects: supply, distribution, and regulation of goods or services. State interventions in the health sector cover the same aspects. The state regulates the medical market to prevent market defects. It affects the distribution of resources by developing special rules and instructions. Antimonopoly legislation is such a mechanism of regulation. The paper discusses various mechanisms of state intervention in the health sector, including taxes and subsidies, public health care, transfer programs, and regulation. Their goal is to influence the distribution of resources and revenues in the health sector. Much of the government intervention in the health sector is aimed at reducing costs in the industry. These regulations restrict entry into the medical market, limit the industry’s inappropriate expansion, and control prices. Some regulations also try to improve the quality of treatment. Licensing of medical personnel is the best example of quality control and improvement.