2018_EJRNL_PP_JEREMY_HESS_1.pdf
Terbatas Suharsiyah
» ITB
Terbatas Suharsiyah
» ITB
Petroleum is used widely in health care—primarily as a transport fuel and
feedstock for pharmaceuticals, plastics, and medical supplies—and few substitutes for it are available. This dependence theoretically makes health care
vulnerable to petroleum supply shifts, but this vulnerability has not been
empirically assessed. We quantify key aspects of petroleum use in health care
and explore historical associations between petroleum supply shocks and health
care prices. These analyses confirm that petroleum products are intrinsic to
modern health care and that petroleum supply shifts can affect health care
prices. In anticipation of future supply contractions lasting longer than previous
shifts and potentially disrupting health care delivery, we propose an adaptive
management approach and outline its application to the example of emergency
medical services
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