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Business Economics Economics For Healthcare Managers

a) The anticipated visits when the marketing department estimates medicare visits equal to 5 - (1.0 × C) + (-6.5 × T O ) + (5 × T R ) + (0.01 × Y) where (C) copayment is $20, waiting time (T O ) is 30 minutes, and waiting time in competitor’s clinic (T R ) is 40 minutes, and per capita income (Y) is $40,000. Introduction: Businesses use market forecasting to assume the performance that they can perform in their target markets in the future. Revenue refers to the entire amount of money that is made by selling products and services in the market and it is essential to the business's core operations. In this case, C (copayment) is $20 T O (waiting time in the organization) = 30 minutes T R (waiting time in competitors’ organization) = 40 minutes And, Y (Per Capita Income) = $40,000. Therefore, medicare visits are equal to: = 5 - 1 .0×C + (-6 .5×T O ) + (5×T R ) + 0 .01×Y = 5 - (1×20) + (-6 .5×30) + (5×40) + ( .01×40,000) = 5 - 20 - 195 + 200 + 400 = 390 visits b) The anticipated revenue when the medicare fee is $120. Introduction: Businesses use market forecasting to assume the performance that they can perform in their particular target markets in the future. Revenue refers to the entire amount of money that is made by selling products and services in the market and it is essential to the business's core operations. Number of visits which are calculated for Medicare is 390 and Medicare’s allowed fee is $120. Then, the Total Revenue would be: = Price× Quantity = $120×390 = $46,800 c) What can change the forecasted revenue and visits? Introduction: Businesses use market forecasting to assume the performance that they can perform in their target markets in the future. Revenue refers to the entire amount of money that is made by selling products and services in the market and it is essential to the business's core operations. In this case, the number of visitors and income through the given equation will change as they depend on any of the factors of calculation. The alteration to the Copay is most likely the biggest one, though because fewer people will go to the visit since they are paying more as the co-pay approaches the genuine price. It can happen because the moral hazard of overusing the product would increase with lower co-pays. After all, they aren't paying the full price. Moreover, patients only think about their co-pay at the time of service due to which adjustments in the co-pay may influence the frequency of visits even though Medicare's reimbursement rate remains constant.

a) The anticipated visits when the marketing department estimates medicare visits equal to 5 - (1.0 × C) + (-6.5 × T O ) + (5 × T R ) + (0.01 × Y) where (C) copayment is $20, waiting time (T O ) is 30 minutes, and waiting time in competitor’s clinic (T R ) is 40 minutes, and per capita income (Y) is $40,000. Introduction: Businesses use market forecasting to assume the performance that they can perform in their target markets in the future. Revenue refers to the entire amount of money that is made by selling products and services in the market and it is essential to the business's core operations. In this case, C (copayment) is $20 T O (waiting time in the organization) = 30 minutes T R (waiting time in competitors’ organization) = 40 minutes And, Y (Per Capita Income) = $40,000. Therefore, medicare visits are equal to: = 5 - 1 .0×C + (-6 .5×T O ) + (5×T R ) + 0 .01×Y = 5 - (1×20) + (-6 .5×30) + (5×40) + ( .01×40,000) = 5 - 20 - 195 + 200 + 400 = 390 visits b) The anticipated revenue when the medicare fee is $120. Introduction: Businesses use market forecasting to assume the performance that they can perform in their particular target markets in the future. Revenue refers to the entire amount of money that is made by selling products and services in the market and it is essential to the business's core operations. Number of visits which are calculated for Medicare is 390 and Medicare’s allowed fee is $120. Then, the Total Revenue would be: = Price× Quantity = $120×390 = $46,800 c) What can change the forecasted revenue and visits? Introduction: Businesses use market forecasting to assume the performance that they can perform in their target markets in the future. Revenue refers to the entire amount of money that is made by selling products and services in the market and it is essential to the business's core operations. In this case, the number of visitors and income through the given equation will change as they depend on any of the factors of calculation. The alteration to the Copay is most likely the biggest one, though because fewer people will go to the visit since they are paying more as the co-pay approaches the genuine price. It can happen because the moral hazard of overusing the product would increase with lower co-pays. After all, they aren't paying the full price. Moreover, patients only think about their co-pay at the time of service due to which adjustments in the co-pay may influence the frequency of visits even though Medicare's reimbursement rate remains constant.

Economics For Healthcare Managers

Economics For Healthcare Managers

4th Edition

ISBN: 9781640550483

Author: Robert H. Lee

Publisher: Health Administration Pr

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Chapter 9, Problem 5E

Chapter 9, Problem 7E

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Chapter 9 Solutions

Economics For Healthcare Managers

Ch. 9 - Prob. 1E Ch. 9 - Prob. 6E

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