Effects of increasing hospital and medical services tariffs on price index in economical sectors by using Input- Output method (2007-2008)

With respect to the fact that the levels of prices and tariffs are determined out of the market procedure, the method of determination and estimation of a balanced price and the necessity of a transparent follow-up on outcomes of increased prices is of vital importance for the politicians of this section.

To determine the effects of increasing hospital and medical services tariffs on price index in other economical sectors.

In this applicable study, the input-output table of the year 2001 of the Iran Statistics Centres was used as the statistical basis. Using three scenarios associated with increased tariffs marked as “weak” (approved tariff), “moderate” (based on inflation rate), and “strong” (proposed by the Medical Council), the effects of increased tariffs on price index in other economical sectors were evaluated. Two open & close supply approaches were used to analyze the inputs.

The first, second, and third scenarios in open approach for increase in tariffs indicated a range of effects on price index in economical sectors calculated at 0.00001-13.81%, 0.00001-15.31%, and 0.00003-50.43%, respectively. In closed approach, the increase in tariffs in the first, second, and third scenario showed a range of effects on price index in economical sectors calculated at 0.02-12.46%, 0.02-14.01%, and 0.06-46.14%, respectively. Finally, the agricultural section demonstrated the least positive sensitivity and the hospital and medical section the most positive sensitivity to increase in tariffs.

The findings of present study indicated that changes in medical and hospital services tariffs have little effects in other sections and a small role in production process and economic integration. These sections fundamentally have marginal consumption nature. The results of open and close approaches in different scenarios showed that the tariffs of medical and hospital sections must be increased according to the inflation rate.