What is the concept of "demand-side rationing" in health care economics?

The concept of "demand-side rationing" in health care economics refers specifically to restricting access to health care services due to the economic constraints faced by consumers. This phenomenon occurs when individuals cannot afford to pay for certain medical services or treatments, resulting in decreased access to care even when those services are available. Essentially, demand-side rationing highlights how patients' financial limitations influence their ability to obtain necessary health care, which can lead to delayed treatment or forgoing care altogether.

This dynamic contrasts with supply-side rationing, where limitations on services are imposed by providers or health care systems. Understanding demand-side rationing is crucial as it underscores the importance of affordability in health care access and how economic factors impact patient behavior and health outcomes.