Model of the demand for medical and health services in West Malaysia

THE DATA OBTAINED FROM A 1975 HOUSEHOLD SURVEY IN WEST MALAYSIA IS USED HERE TO DEVELOP A THEORETICAL AND ECONOMETRIC MODEL OF THE DEMAND FOR MEDICAL CARE. IT EXAMINES: (1) WHETHER THE DEMAND FOR OUTPATIENT AND INPATIENT CARE IS SENSITIVE TO ITS COST IN TIME AND FINANCIAL RESOURCES; (2) WHETHER THE PRINCIPAL CONSUMERS ARE THOSE WITH THE HIGHEST RATES OF ILLNESS; (3) WHETHER THE DEMAND IS ELASTIC TO INCOME; (4) WHAT FACTORS LEAD PATIENTS TO GET TREATMENT FROM TRADITIONAL MEDICAL PRACTITIONERS RATHER THAN MODERN MEDICAL FACILITIES; (5) THE EXPLANATION FOR THE CHOICE OF PRIVATE RATHER THAN PUBLIC CLINICS; (6) WHETHER THE PATTERN OF DEMAND DIFFERS ACROSS CULTURES; AND (7) WHAT THE INCOME DISTRIBUTIONAL IMPACT IS TO SUBSIDIZE MEDICAL DEMAND APPEARS INELASTIC TO CASH PRICE, COST IN TIME, OR INCOME. AS INCOMES RISE, HOUSEHOLDS SHIFT THEIR DEMAND FROM TRADITIONAL PRACTITIONERS AND TOWARD MODERN MEDICAL SOURCES. THIS FINDING HOLDS ACROSS ETHNIC GROUPS IN URBAN AND RURAL AREAS.