Please write a discussion post reply of 300 words to the following post. Must ha

Please write a discussion post reply of 300 words to the following post. Must have at least 2 scholarly peer-reviewed sources using APA format. Sources must be within the last 5 years. Must include one biblical integration that is NOT to be listed as a resource. Original post instructions are listed here:
Post you will reply to is here:
The reasons on why markets in the healthcare industry do not perform well or fail can vary. The top reasons that markets fail relate to the effects of externalities and public goods on the product and/or service, the level of perfection in the competition and information, the prospect of a natural monopoly, and/or the income redistribution utilized [Lee15]. One additional factor that influences the success or failure of markets is the ability to meet the necessary conditions for a free market. A closer look at each of these factors will assist in providing a better understanding of the cause and effect of each.
The side effects of the production or use of a product or service that directly affects one that is not part of the transaction taking place is known as an externality [Lee15]. When looking at how this affects the market, the use of immunization is a good example. If everyone around you gets immunized, the risk of others who came in contact with those individuals who have contracted the disease will be low therefore, the immunization rates will be significantly reduced as well. This is considered an external benefit as this is a positive direct side effect of the immunizations[Lee15]. In contrast when the effect felt is harmful, it would be considered an external cost [Lee15]. A more extreme example of an externality is known as a public good. To define it, a pure public good is “a good whose consumption is non-rival and non-excludable” [Lee15]. Generally speaking, this means that the use or consumption of a product by one consumer will not reduce or change the availability for another person, as well as the inability to prevent consumers from accessing these products. Market failures have been shown to occur in cases where these factors were not taken into consideration, and because there is a lapse in understanding the inability to charge individuals for the use or consumption of a public good [Fis09].
The level of efficiency achieved within a market relies upon the accuracy and amount of information available and utilized by both the seller and the buyer[Lee15]. An imperfect competition develops as the level of uncertainty in the information increases. Healthcare is a prime example of where this occurs. The buyer is the patient and the facility or provider is the seller. In most cases the patient is seeking care to obtain more information on their illness – therefore they do not currently have enough information. Each healthcare provider and hospital may offer the same or similar type of care, but also provide more specialized services as well. In this scenario, an imperfect competition exists as the patient does not have enough information to clearly determine which hospital or clinic to seek care at for their specific health concern. To breach this gap, it is the responsibility of the seller (healthcare facility) to publicize information regarding the types of services they offer, the information or type of care being the commodity they have available for sale.
Natural monopoly is defined as “a market that can be most efficiently served by a single firm” [Lee15]. The size of a monopoly varies based on location and the amount of competition available in their area and is developed based on the structure of costs and the size of the available market[Lee15]. The greater the investment in setting up, for example a healthcare facility, the less chance there is for a large number of them to be started[Lee15]. An example would be an investment amount of $10 million versus $2 million would reduce the number of entities with the available funds and therefore create a natural monopoly. The pricing for the services or products in this type of monopoly tends to be higher as a direct result and so usually produce a lower volume of sales[Lee15].
The final factor to be considered in how successful a market is or could be is income redistribution. The idea behind income redistribution is based on a social stratum that wishes to reduce inequalities related to income levels through the use of progressive taxation, minimum wage policies, tax credits, and cash transfers to lower income groups [Sta07]. Examples; government programs that have been designed to assist in equaling out income levels include both Medicaid and the Social Security Disability Insurance (SSDI). Each is designed to assist with either health coverage or financial assistance for those who are in a low income bracket or are unable to work because of a disability.
When looking into the level of success achieved for a company within a specific industry market, it is key to look at all elements and to understand the different factors that could affect it, either positively or negatively. The use of this information would then assist in fixing or preventing further failures and improve the level of care available for patients. The Lord shares his words through the Bible on our tasks in achieving a better world for all who live in it. “Every good and perfect gift is from above, coming down from the Father of the heavenly lights, who does not change like shifting shadows.” (James 1:17, NIV).
References
Fisman, D. N., & Laupland, K. B. (2009). The sounds of silence: Public goods, externalities, and the value of infectious disease control programs. The Canadian Journal of Infectious Diseases & Medical Microbiology = Journal Canadien Des Maladies Infectieuses Et De La Microbiologie Medicale, 20(2), 39-41. doi:http://dx.doi.org/10.1155/2009/946012
Lee, R. H. (2015). Economics for healthcare managers (3rd ed.). Chicago, IL: Health Administration Press.
Starfield, B., & Birn, A. (2007). Income redistribution is not enough: Income inequality, social welfare programs, and achieving equity in health. Journal of Epidemiology and Community Health, 61(12), 1038-1041. doi:http://dx.doi.org.ezproxy.liberty.edu/10.1136/jech.2006.054627