Please answer these eight questions. No page or word limit as long as you have answered the questions. Text book used was
-Buppert, C. (2018). Nurse Practitioner’s Business Practice and Legal Guide. (6th edition). Burlington, MA: Jones & Bartlett Publishers.
-Lee, R. (2019). Economics for healthcare managers (4th ed.) Chicago, IL: Health Administration.
1) ALL economic issues require consideration of 2 key concepts:
Name these 2 concepts
*Hint: it’s not supply and demand
2) If you were part of a team working with a state department of health, CDC, WHO or other organization and asked to demonstrate the impact of Covid19, describe the policy considerations in a cost-benefit analysis, compared to a cost-effectiveness analysis.
Cost-Benefit Analysis considerations:
Cost Effectiveness Analysis considerations:
3) Economic analysis/ application of economic theory to clinical practice can be helpful when determining how to be profitable or valuable to an employer. Using economic terms and concepts, describe at least 2 ways in which economic theory knowledge can assist your practice strategies:
4) Describe why the demand for healthcare is usually inelastic and provide an example:
5) When considering the many forms of reimbursement to healthcare providers provide a brief description of benefits and risks for each as they relate to profitability, costs and quality:
Capitation/ capitated payment (risks and benefits):
Fee for Service (risks and benefits):
Managed Care Organizations (PPO and HMO plan risk and benefits):
Medicaid (risks and benefits):
CASH (risks and benefits):
Case rates/ Piece-meal (risks and benefits):
6) When determining the best strategy to maintain a profitable family practice, how would you decide upon forms of payment you are willing to accept for services (consider ALL types) and what would you choose?
(Describe forms of payment you would choose and provide rationale)
7) Select the correct answer for the following scenarios to correctly state the forecasted result according to economic theory (highlight the correct choice or rewrite each statement using the correct choice):
A. Demand Theory suggests that the quantity demanded by consumers/ patients will
(increase / decrease) when the price of a good or service is raised.
B. Demand for your services as a primary care provider will (increase / decrease) if the price or cost for healthcare services of a substitute go down.
8)Select the correct answer for the following scenarios to correctly state the forecasted result according to economic theory (highlight the correct choice, or re-write each statement using the correct choice):
A. Profits can or should increase by following the economic rules of providing a service as long as the revenue is (greater than / less than) costs,
B. volume is reduced if marginal revenue is (greater than / less than ) marginal cost
C. volume is expanded when marginal revenue is (greater than / less than ) marginal cost.
Group of answer choices
A. GREATER, B. LESS THAN, C. GREATER