Dynamics of the Demonstration Formal Rules in the Healthcare Sphere

Abstract

The purpose of this publication is to define the reasons for the inefficiency of the current demonstration formal rules governing healthcare activities and the reasons for the sustainability of the relevant formal rules. It is shown that the main reasons for the negative dynamics of the efficiency of formal rules in the healthcare sphere are the following: pressure on the part of individual interested groups, manipulation of public sentiments, and the spread of ineffective demonstration formal rules in the above named sphere. Unlike the demonstration formal rules observed in other areas of economic and public life, demonstration formal rules in the healthcare sphere are characterized not only by targeted, but also by significant transaction inefficiency. It is proved that numerous demonstration formal rules can not only reduce the efficiency of the medical system and slow down the pace of institutional reforms in the healthcare sphere, but also create conditions that pose a direct threat to human life and health. It is shown that, despite the symmetry of the costs associated with changing demonstration formal healthcare sphere regulations, the relevant demonstration formal rules can be preserved for a long time. The dynamics of ineffective demonstration formal rules in the healthcare sphere is determined by the lack of a request from society for further institutional reforms in the healthcare sphere. The latter is due to the low level of general education of the population, which does not allow society to assess the targeted and transaction inefficiency of demonstration formal rules, also to a small level of additional transaction costs of bureaucratic procedures of each individual demonstration formal rule. Measures to prevent the spread of ineffective demonstration formal rules in the healthcare sphere are proposed.

Keywords

• transaction costs
• institutional reforms
• formal rules