Chapter 7: Exercise #8
How will each of the following bases for hospital reimbursement affect the number of admissions the average length of stay the volume of services per day and the unit cost of services (cost per service):
fee-for-service reimbursement
per diem reimbursement
fixed fee per admission
Chapter 8: Exercise #8
The equilibrium price for physiotherapy visits is $30 and the quantity utilized is 150 visits as a result of the demand and supply conditions in this diagram. The state legislature is concerned that the current price does not give the physiotherapists enough incentive to produce a high volume of services. A proposal has been made to increase the price paid by the consumers to the suppliers to $40. What will the resulting quantities demanded and supplied and the resulting utilization be?
Chapter 9: Exercise #2
The state Medicaid agency has set a rate of $5.50 per visit for all Medicaid enrollees who visit a physician. Each physician also has private paying patients. The demand curve for each physician can be characterized as follows and physicians can be regarded as individual monopolists.
Each physician also has a cost schedule that can be characterized as follows:
a. If each physician is a profit maximizing provider how many visits will he/she provide to public and private patients?
b. What will the number of visits provided be if the Medicaid Agency lowers its rate to $3 per visit but the demand remains the same?
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