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Free Market : Vip Health Care

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Submitted By jlcrowel325
Words 988
Pages 4
The Benefactor Society
Jessica Crowel
Palm Beach State College

Abstract
The definition of invisible hand is a term coined by economist Adam Smith in his 1776 book "An Inquiry into the Nature and Causes of the Wealth of Nations". It was used to explain what a free market is. A free market is a market system in which the prices for goods and services are set freely by consent between sellers and consumers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority. Within the healthcare market, a heavily regulated market, there was an opening for VIP care for those that could afford it. It is unregulated and should not be due the fact that the outcome of money paid for the services, pay for bettering the hospital.
The Benefactor Society A free-market economy is an economy where all markets within it are unregulated by any parties other than those players in the market. In its purest form the government plays a neutral role in its administration and legislation of economic activity, neither limiting it nor actively promoting it (Meiners, Ringleb, & Edwards, 2011). Within this economy the healthcare market is heavily regulated which causes prices to be high and as well as needs and wants from consumers. The upper class consumers expect a certain level of attention and care. Because of these expectations there was an opening for a new market, VIP patient care.
A term used by Adam Smith to describe the natural force that guides free market capitalism through competition for scarce resources is called the invisible hand. According to Adam Smith, in a free market each participant will try to maximize self-interest, and the interaction of market participants, leading to exchange of goods and services, enables each participant to be better off than when simply producing for himself (Investopedia, 2014). He further said that in a free market, no regulation of any type would be needed to ensure that the mutually beneficial exchange of goods and services took place, since this invisible hand would guide market participants to trade in the most mutually beneficial manner. For 67 years the Bethesda Hospital Foundation has supported the Hospital in accomplishing its mission through the acquisition, management and disbursement of charitable assets and by helping fund the Hospital's programs, initiatives and Centers of Excellence (Hospital, Our History, 2014) (Meiners, Ringleb, & Edwards, 2011). The Foundation continues to raise funds to maintain our Comprehensive Centers of Excellence in many specialties including Heart, Stroke and Cancer as well as support renovations and advancements in numerous areas including the Bethesda Comprehensive Cancer Center and Bethesda's Center for Women and Children.
To thank major donors, Bethesda created the Benefactors Pavilion, a private VIP wing that combines world-class medical care with the comforts of home and five-star hotel amenities. Upon hospitalization, Benefactors Society level donors receive complimentary stays in one of the eleven Benefactors Pavilion suites of Bethesda Hospital East, one of the four VIP Suites in Bethesda Hospital West, or a VIP room in the Heart, Orthopedic or Maternity areas as appropriate. A special menu and food service is provided (Hospital, 2014). A chef will take your order to be prepared in the Pavilion kitchen complimentary for you and your guest. Most importantly for your health, you enjoy that extra level of “TLC” with a nurse to patient ratio of one nurse to three or four patients and access to our Benefactor concierge service to make your stay as comfortable as possible. Benefactors receive expedited service in our Emergency Room after appropriate triage due to their preregistration (Hospital, 2014). A free market is a market system in which the prices for goods and services are set freely by consent between sellers and consumers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority. A free market contrasts with a controlled market or regulated market, in which government intervenes in supply and demand through non-market methods such as laws creating barriers to market entry or directly setting prices. Within the healthcare market, which is heavily regulated, Bethesda Hospital saw a gap in the market. The took advantage by creating a nonprofit and using the donations as a way to thank their investors, giving the privileged a reason to spend such high funds on something that is not going to be immediately used. As a whole the “VIP” services benefit those who can afford them however, the funds that these VIP give are used to better the hospital as whole, services and equipment. Ultimately the contributions from the patrons of the Benefactor Society help to better the entire hospital, which help everyone and anyone who needs the help, whether they be wealthy or not.
A free market is unregulated by government or any regulatory agency, this particular segment, being VIP healthcare, is not regulated. This segment came about because the market had a need for the service. The market has done its job well in maintaining the costs and benefits of the service. The government does not need to, nor should it interfere in this case. If the government were to interfere they would end up saying the service should be extended to everyone, however because of this service and the money it brings in, all people are getting better service with better results.

Works Cited
Hospital, B. (2014, October 26). Our History. Retrieved from Bethesda Hospital Foundation: http://www.bethesdahospitalfoundation.org/our-history

Hospital, B. (2014, October 27). The Benefactors Pavilion Society. Retrieved from Bethesda Hospital Foundation: http://www.bethesdahospitalfoundation.org/benefactors-pavilion-society

Investopedia. (2014, October 26). Invisble Hand. Retrieved from Investopeia: http://www.investopedia.com/terms/i/invisiblehand.asp

Meiners, R. E., Ringleb, A. H., & Edwards, F. L. (2011). The Legal Environment of Business. Independence: Cengage Learning.

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