Health Economics
14th Edition
ISBN: 9781137029966
Author: Jay Bhattacharya
Publisher: SPRINGER NATURE CUSTOMER SERVICE
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 17EQ
a)
To determine
Explain the effect of hospital merging on the price of hospital care.
b)
To determine
Explain the effect of hospital merging on the improvisation of hospital care.
c)
To determine
Explain the changes if the hospitals are run by the government.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
According to Gaynor, Laudicella, and Propper (2011),
Can you think of reasons why hospital mergers might lead to improvements in the quality of care for a given level of inputs (which is one measure of hospital productivity)? Learning by doing may be facilitated by hospital mergers. Large hospitals can achieve more specialization and consequently their costs of care may be lower.
In some countries, such as Canada and UK, direct-to-consumer (DTC) advertising for
pharmaceutical products is illegal or tightly controlled. Which of the following is NOT
a reason why DTC is tightly controlled?
DTC have the potential to drive up spending on drugs and exacerbate moral
hazard.
DTC makes patients aware of new remedies.
DTC can put a strain on doctor-patient relationship when patients demand some
drugs that are not necessary or not the best options.
Asymmetric information: consumers are not in a good position to determine if a
drug is what they need.
According to Gaynor, Laudicella, and Propper (2011),
In the U.K., most hospitals are owned by the government, rather than privately held. In a setting where most hospitals are not owned by the government (such as in the U.S.), what effect do you predict that hospital mergers would have on the price of hospital care? Presumably, hospital mergers would lead to reduced competition and higher prices for any given type of care.
Knowledge Booster
Similar questions
- Use supply and demand concepts to explain why the American Medical Association finds it beneficial to require more strict standards for entrance to medical schoolsarrow_forwardIn some countries, such as Canada and UK, direct-to-consumer (DTC) advertising for pharmaceutical products is illegal or tightly controlled. Which of the following is NOT a reason why DTC is tightly controlled? Question 7 options: Asymmetric information: consumers are not in a good position to determine if a drug is what they need. DTC makes patients aware of new remedies. DTC can put a strain on doctor-patient relationship when patients demand some drugs that are not necessary or not the best options. DTC have the potential to drive up spending on drugs and exacerbate moral hazard.arrow_forwardTrue or False. There is no such thing as “too much competition” in the private hospital market. Be sure to justify your answer.arrow_forward
- Which of the following best describe the physician-hospital relationship in most American hospitals? physicians are direct employees of a hospital or hospital system "physician's workbench" relationship physicians own hospitalsarrow_forwardAnalyze the relationship between the financial well-being of the healthcare industry and availability of healthcare, in consideration of market and demand theoriesarrow_forwardWhich two phenomena relate to physicians overprescribing treatment? Select 2 correct answer(s) defensive medicine Efficient discrimination physician induced demandarrow_forward
- The economic role of the emergency department in the health care continuum: Applying Michael Porter's five forces model to emergency medicine. Emergency Medicine plays a vital role in the health care continuum across the world. Michael Porters' five forces model of industry analysis provides an insight into the economics of emergency care by showing how the forces of supplier power, buyer power, threat of substitution, barriers to entry, and internal rivalry affect Emergency Mediane. lustrating these relationships provides a view into the complexities of the emergency care industry and offers opportunities for Emergency Departments, groups of physicians and the individual emergency physician to maximize the relationship with other market players. Briefly explain Porter's five force model taking into consideration the above content/abstract. (n 300 Words)arrow_forwardPhysicians’ offices supply some urgent care services (i.e., services patients seek for prompt attention but not for preservation of life or limb). Name three other providers of urgent care services.arrow_forwarddiscuss some of the benefits and risks of new Health promoters basing their professional identities on established norms within this profession.arrow_forward
- There have been shifts in policy regarding the regulation of managed care organizations intended to protect the consumer from rationed care. Are current regulations working or are they adding to already too much regulation and associated cost of providing healthcare in the U.S.?arrow_forwardWhat effects would joining a MCO have on your clinic regarding staffing, patient volume, and financial stability?What policies and procedures should be used by the MCOs to reduce costs for their clientele?arrow_forwardImperfect competition and moral hazard. Some economists have argued that moral hazard and monopolistic health care markets are two socially inefficient problems that partially cancel each other out. Relative to the optimal level of health care Q∗, how much health care is provided in the presence of moral hazard? Assume perfectly competitive health care markets. Relative to the optimal level of health care Q∗, how much health care is provided in the presence of monopolistic health care markets? Assume no moral hazard. Write a one-sentence defense of the argument that moral hazard and imperfectly competitive health care markets could combine to provide a good level of health care provision Q.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
