Few topics of public debate elicit more emotion in people than the role of the private sector in health care. It is often argued that profit has no place in this sector, especially when it comes to hospital care. Some people think that the profit motive would encourage "the cutting of corners," that profit would add to the cost of providing a service, or that for-profit medical facilities would avoid the more complex cases or those perceived to be "less profitable." Are these beliefs justified?

To what extent should tobacco products be taxed?

The harmful effects of waiting lists for patients.

The harmful effects of waiting lists for patients.

Taxing tobacco in order to reduce consumption.

The respective contribution of the public and private sectors in the development of new drugs.

The respective contribution of the public and private sectors in the development of new drugs.

The discovery and marketing of countless therapeutic drugs and vaccines over the past century has undeniably helped to revolutionize the field of health care. Despite the scope of this progress and the benefits that have flowed from it, the pharmaceutical sector continues to be the target of numerous criticisms. How are innovative drugs discovered and developed? What do the public sector and the private sector each contribute to the process? The purpose of this Economic Note is to shed some light on these questions.

The role of the private sector in the field of health care.

The increased role of the private sector in the delivery of healthcare services.