What is meant by supply-side rationing in health care?

Supply-side rationing in health care refers to the deliberate restrictions on the availability of medical services and resources in order to control costs and manage limited resources effectively. This approach is utilized by governments and health care systems, particularly in environments where health care resources are scarce or where there is a need to contain expenditures.

By limiting the number of procedures, treatments, or types of care available, supply-side rationing seeks to align the provision of health care services with available funding and resources, thereby avoiding excessive spending on unnecessary or costly interventions. This method contrasts sharply with providing unlimited access to all medical services, which could lead to skyrocketing health care costs and unsustainable spending. It also differs from encouraging patient demand for services, which may advocate for higher consumption of health resources without regard to cost management. Ultimately, supply-side rationing highlights the balance that must be struck between providing care and maintaining economic sustainability within the health care system.