Change with structure of the economy both in the Thai context and at the global level towards a system of free enterprise have underscored the importance of the private sector’s role in national development.
In the field of public health a specific condition exists in that the free market mechanism can not function at its best because health service providers themselves can generate demand for utilizing services. Countries with well developed systems of free enterprise have set up rules and procedures to contain the cost of medical care services provided by the private sector an appropriate level to ensure that the general public have access to all essential health care services at affordable cost.
Meanwhile in other countries where free enterprise is fully exercised there have been many instances of health care expenses sky-rocketing out of control, thus affecting the low-income population.
Promotion of the appropriate role of the private health care business can be divided by type of business as follows :
1. Health care service business
The Thai many of Public Health has directly and indirectly supported private sector participation in organizing health care services to reduce its workload and provide a possible alternative for those who could afford to pay for extra conveniences. However, experiences in Thailand and clsewhere have shown that competition among private hospitals is extremely high, particularly in utilizing costly technologies and medical equipment. This competition coupled with imperfect information of the consumers have often resulted in a sharply rising cost of services which not only placed a burden on individuals or their families but also affected the national health expenditure as a whole.
On the other hand, the people who seek health care services from the private sector would expect high quality services and if their needs are not met or if mistakes are made in the course of treatment, they will certainly complain or sue the service provider, a trend which is currently on the rise.
While the government exercises control over the private hospital business, the latter tries to find appropriate measures for protecting itself. This defensive mechanism is unproductive for both sides. It is essential for the government to monitor the private sector and ensure that its role in providing health care services is properly carried out and of real benefit to the general public.
2. Pharmaceutical and medical supply business
The pharmaceutical and medical supply business in Thailand is well advanced and has high potential. Should it be actively supported by government mechanisms and motivated to improve its quality control measures to meet international standards, the country would become more self-reliant as regards pharmaceutical and medical supplies. There would also be a better chance of its expending its to markets in neighbouring countries and thus fostering the growth of the national economy.
