demand curve shift

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Doctor, do I really need this: An insight into the motivations behind medical overservicing

I don’t know about you, but I often feel like I’m being called back to the doctor for no reason – to take another ‘all-clear’ blood test, have a six-monthly examination I didn’t know I needed, or simply undertake a fitness check - all to be told that, at the end of being poked and prodded I am just as healthy as I was beforehand. Go figure.

While being able to access healthcare so readily is no doubt a good thing (and puts Australia above most of the rest of the world in terms of living standards), over recent years researchers have identified a curious phenomenon unique to the health market – the idea of ‘supplier-induced demand’.

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