What does supply-side rationing aim to control?

Supply-side rationing focuses on controlling healthcare costs by managing the availability of services. It does this by intentionally limiting the supply of certain health services or treatments to narrow the focus toward cost savings, particularly in public health systems. This approach is implemented to prevent over-utilization of medical resources, thereby helping to manage healthcare expenditures effectively.

For instance, by restricting the number of procedures or treatments available, supply-side rationing aims to ensure that resources are used judiciously and that only necessary care is provided. This ultimately can lead to reduced overall spending in healthcare systems, particularly in situations where demand for services is high and resources are finite. By prioritizing cost control through limited supply, systems aim to create a more sustainable healthcare environment, though it can have trade-offs in terms of patient access and service availability.